Florida Senate - 2009                                     SB 278
       
       
       
       By Senator Gaetz
       
       
       
       
       4-00292D-09                                            2009278__
    1                        A bill to be entitled                      
    2         An act relating to charter schools; amending ss.
    3         11.45, 218.39, 218.50, and 218.501, F.S., relating to
    4         audit reports by the Auditor General; conforming
    5         provisions to changes made by the act; amending ss.
    6         218.503 and 218.504, F.S.; providing that a charter
    7         technical career center is subject to certain
    8         requirements in a financial emergency; requiring that
    9         the sponsor be notified of certain conditions;
   10         providing for the development of a financial recovery
   11         plan, which may be approved by the Commissioner of
   12         Education; amending s. 1002.33, F.S.; providing for
   13         duties of a charter school sponsor and governing board
   14         if a charter school or charter technical career center
   15         experiences a deteriorating financial condition or is
   16         in a financial emergency; specifying forms to be used
   17         by a charter school applicant and sponsor; requiring
   18         applicant training and documentation; deleting
   19         requirements relating to auditing and being in a state
   20         of financial emergency; requiring charter schools to
   21         disclose the identity of relatives of charter school
   22         personnel; providing that the immediate termination of
   23         a charter is exempt from requirements for an informal
   24         hearing or for a hearing under ch. 120, F.S.;
   25         requiring that a charter school comply with
   26         constitutional limitations on class size; providing
   27         for a limitation on funding; providing for the
   28         disclosure of the performance of a charter school that
   29         is not given a school grade or school improvement
   30         rating; revising the requirements for providing
   31         certain information to the public; providing reporting
   32         requirements; providing restrictions for the
   33         employment of relatives by charter school personnel;
   34         providing that members of a charter school governing
   35         board are subject to certain standards of conduct
   36         specified in ss. 112.313 and 112.3143, F.S.; amending
   37         s. 1002.335, F.S.; eliminating the requirement for a
   38         district school board to annually seek continued
   39         exclusivity from the State Board of Education;
   40         providing for challenges to such exclusivity;
   41         providing a presumption; providing for informal
   42         hearings; specifying additional components of
   43         cosponsor agreements; amending s. 1002.34, F.S.;
   44         providing additional duties for charter technical
   45         career centers, applicants, sponsors, and governing
   46         boards; requiring the Department of Education to offer
   47         or arrange training and assistance to applicants for a
   48         charter technical career center; requiring that an
   49         applicant participate in the training; creating s.
   50         1002.345, F.S.; establishing criteria and requirements
   51         for charter schools and charter technical career
   52         centers that have a deteriorating financial condition
   53         or are in a state of financial emergency; establishing
   54         requirements for charter schools, charter technical
   55         career centers, governing bodies, and sponsors;
   56         providing for corrective action and financial recovery
   57         plans; providing for duties of auditors, the
   58         Commissioner of Education, and the Department of
   59         Education; requiring the State Board of Education to
   60         adopt rules; providing grounds for termination or
   61         nonrenewal of a charter; providing an effective date.
   62         
   63  Be It Enacted by the Legislature of the State of Florida:
   64         
   65         Section 1. Paragraph (e) of subsection (7) and subsection
   66  (8) of section 11.45, Florida Statutes, are amended to read:
   67         11.45 Definitions; duties; authorities; reports; rules.—
   68         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   69         (e) The Auditor General shall notify the Governor or the
   70  Commissioner of Education, as appropriate, and the Legislative
   71  Auditing Committee of any audit report reviewed by the Auditor
   72  General pursuant to paragraph (b) which contains a statement
   73  that a local governmental entity, charter school, charter
   74  technical career center, or district school board has met one or
   75  more of the conditions specified in s. 218.503. If the Auditor
   76  General requests a clarification regarding information included
   77  in an audit report to determine whether a local governmental
   78  entity, charter school, charter technical career center, or
   79  district school board has met one or more of the conditions
   80  specified in s. 218.503, the requested clarification must be
   81  provided within 45 days after the date of the request. If the
   82  local governmental entity, charter school, charter technical
   83  career center, or district school board does not comply with the
   84  Auditor General's request, the Auditor General shall notify the
   85  Legislative Auditing Committee. If, after obtaining the
   86  requested clarification, the Auditor General determines that the
   87  local governmental entity, charter school, charter technical
   88  career center, or district school board has met one or more of
   89  the conditions specified in s. 218.503, he or she shall notify
   90  the Governor or the Commissioner of Education, as appropriate,
   91  and the Legislative Auditing Committee.
   92         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
   93  consultation with the Board of Accountancy, shall adopt rules
   94  for the form and conduct of all financial audits performed by
   95  independent certified public accountants pursuant to ss.
   96  215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
   97  audits of local governmental entities, charter schools, charter
   98  technical career centers, and district school boards must
   99  include, but are not limited to, requirements for the reporting
  100  of information necessary to carry out the purposes of the Local
  101  Governmental Entity, Charter School, Charter Technical Career
  102  Center, and District School Board Financial Emergencies Act as
  103  stated in s. 218.501.
  104         Section 2. Subsection (5) of section 218.39, Florida
  105  Statutes, is amended to read:
  106         218.39 Annual financial audit reports.—
  107         (5) At the conclusion of the audit, the auditor shall
  108  discuss with the chair of each local governmental entity or the
  109  chair's designee, or with the elected official of each county
  110  agency or with the elected official's designee, or with the
  111  chair of the district school board or the chair's designee, or
  112  with the chair of the board of the charter school or the chair's
  113  designee, or with the chair of the charter technical career
  114  center or the chair's designee, as appropriate, all of the
  115  auditor's comments that will be included in the audit report. If
  116  the officer is not available to discuss the auditor's comments,
  117  their discussion is presumed when the comments are delivered in
  118  writing to his or her office. The auditor shall notify each
  119  member of the governing body of a local governmental entity,
  120  district school board, or charter school, or charter technical
  121  career center for which deteriorating financial conditions exist
  122  that may cause a condition described in s. 218.503(1) to occur
  123  if actions are not taken to address such conditions.
  124         Section 3. Section 218.50, Florida Statutes, is amended to
  125  read:
  126         218.50 Short title.—Sections 218.50-218.504 may be cited as
  127  the “Local Governmental Entity, Charter School, Charter
  128  Technical Career Center, and District School Board Financial
  129  Emergencies Act.”
  130         Section 4. Section 218.501, Florida Statutes, is amended to
  131  read:
  132         218.501 Purposes.—The purposes of ss. 218.50-218.504 are:
  133         (1) To promote the fiscal responsibility of local
  134  governmental entities, charter schools, charter technical career
  135  centers, and district school boards.
  136         (2) To assist local governmental entities, charter schools,
  137  charter technical career centers, and district school boards in
  138  providing essential services without interruption and in meeting
  139  their financial obligations.
  140         (3) To assist local governmental entities, charter schools,
  141  charter technical career centers, and district school boards
  142  through the improvement of local financial management
  143  procedures.
  144         Section 5. Subsections (1), (2), (3), and (4) of section
  145  218.503, Florida Statutes, are amended to read:
  146         218.503 Determination of financial emergency.—
  147         (1) Local governmental entities, charter schools, charter
  148  technical career centers, and district school boards shall be
  149  subject to review and oversight by the Governor, the charter
  150  school sponsor, the charter technical career center sponsor, or
  151  the Commissioner of Education, as appropriate, when any one of
  152  the following conditions occurs:
  153         (a) Failure within the same fiscal year in which due to pay
  154  short-term loans or failure to make bond debt service or other
  155  long-term debt payments when due, as a result of a lack of
  156  funds.
  157         (b) Failure to pay uncontested claims from creditors within
  158  90 days after the claim is presented, as a result of a lack of
  159  funds.
  160         (c) Failure to transfer at the appropriate time, due to
  161  lack of funds:
  162         1. Taxes withheld on the income of employees; or
  163         2. Employer and employee contributions for:
  164         a. Federal social security; or
  165         b. Any pension, retirement, or benefit plan of an employee.
  166         (d) Failure for one pay period to pay, due to lack of
  167  funds:
  168         1. Wages and salaries owed to employees; or
  169         2. Retirement benefits owed to former employees.
  170         (e) An unreserved or total fund balance or retained
  171  earnings deficit, or unrestricted or total net assets deficit,
  172  as reported on the balance sheet or statement of net assets on
  173  the general purpose or fund financial statements, for which
  174  sufficient resources of the local governmental entity, as
  175  reported on the balance sheet or statement of net assets on the
  176  general purpose or fund financial statements, are not available
  177  to cover the deficit. Resources available to cover reported
  178  deficits include net assets that are not otherwise restricted by
  179  federal, state, or local laws, bond covenants, contractual
  180  agreements, or other legal constraints. Fixed or capital assets,
  181  the disposal of which would impair the ability of a local
  182  governmental entity to carry out its functions, are not
  183  considered resources available to cover reported deficits.
  184         (2) A local governmental entity shall notify the Governor
  185  and the Legislative Auditing Committee, a charter school shall
  186  notify the charter school sponsor, the Commissioner of
  187  Education, and the Legislative Auditing Committee, a charter
  188  technical career center shall notify the charter technical
  189  career center sponsor, the Commissioner of Education, and the
  190  Legislative Auditing Committee, and a district school board
  191  shall notify the Commissioner of Education and the Legislative
  192  Auditing Committee, when one or more of the conditions specified
  193  in subsection (1) have occurred or will occur if action is not
  194  taken to assist the local governmental entity, charter school,
  195  charter technical career center, or district school board. In
  196  addition, any state agency must, within 30 days after a
  197  determination that one or more of the conditions specified in
  198  subsection (1) have occurred or will occur if action is not
  199  taken to assist the local governmental entity, charter school,
  200  charter technical career center, or district school board,
  201  notify the Governor, charter school sponsor, charter technical
  202  career center sponsor, or the Commissioner of Education, as
  203  appropriate, and the Legislative Auditing Committee.
  204         (3) Upon notification that one or more of the conditions in
  205  subsection (1) have occurred or will occur if action is not
  206  taken to assist the local governmental entity or district school
  207  board exist, the Governor or his or her designee shall contact
  208  the local governmental entity or the Commissioner of Education
  209  or his or her designee shall contact the district school board
  210  to determine what actions have been taken by the local
  211  governmental entity or the district school board to resolve or
  212  prevent the condition. The Governor or the Commissioner of
  213  Education, as appropriate, shall determine whether the local
  214  governmental entity or the district school board needs state
  215  assistance to resolve or prevent the condition. If state
  216  assistance is needed, the local governmental entity or district
  217  school board is considered to be in a state of financial
  218  emergency. The Governor or the Commissioner of Education, as
  219  appropriate, has the authority to implement measures as set
  220  forth in ss. 218.50-218.504 to assist the local governmental
  221  entity or district school board in resolving the financial
  222  emergency. Such measures may include, but are not limited to:
  223         (a) Requiring approval of the local governmental entity's
  224  budget by the Governor or approval of the district school
  225  board's budget by the Commissioner of Education.
  226         (b) Authorizing a state loan to a local governmental entity
  227  and providing for repayment of same.
  228         (c) Prohibiting a local governmental entity or district
  229  school board from issuing bonds, notes, certificates of
  230  indebtedness, or any other form of debt until such time as it is
  231  no longer subject to this section.
  232         (d) Making such inspections and reviews of records,
  233  information, reports, and assets of the local governmental
  234  entity or district school board. The appropriate local officials
  235  shall cooperate in such inspections and reviews.
  236         (e) Consulting with officials and auditors of the local
  237  governmental entity or the district school board and the
  238  appropriate state officials regarding any steps necessary to
  239  bring the books of account, accounting systems, financial
  240  procedures, and reports into compliance with state requirements.
  241         (f) Providing technical assistance to the local
  242  governmental entity or the district school board.
  243         (g)1. Establishing a financial emergency board to oversee
  244  the activities of the local governmental entity or the district
  245  school board. If a financial emergency board is established for
  246  a local governmental entity, the Governor shall appoint board
  247  members and select a chair. If a financial emergency board is
  248  established for a district school board, the State Board of
  249  Education shall appoint board members and select a chair. The
  250  financial emergency board shall adopt such rules as are
  251  necessary for conducting board business. The board may:
  252         a. Make such reviews of records, reports, and assets of the
  253  local governmental entity or the district school board as are
  254  needed.
  255         b. Consult with officials and auditors of the local
  256  governmental entity or the district school board and the
  257  appropriate state officials regarding any steps necessary to
  258  bring the books of account, accounting systems, financial
  259  procedures, and reports of the local governmental entity or the
  260  district school board into compliance with state requirements.
  261         c. Review the operations, management, efficiency,
  262  productivity, and financing of functions and operations of the
  263  local governmental entity or the district school board.
  264         2. The recommendations and reports made by the financial
  265  emergency board must be submitted to the Governor for local
  266  governmental entities or to the Commissioner of Education and
  267  the State Board of Education for district school boards for
  268  appropriate action.
  269         (h) Requiring and approving a plan, to be prepared by
  270  officials of the local governmental entity or the district
  271  school board in consultation with the appropriate state
  272  officials, prescribing actions that will cause the local
  273  governmental entity or district school board to no longer be
  274  subject to this section. The plan must include, but need not be
  275  limited to:
  276         1. Provision for payment in full of obligations outlined in
  277  subsection (1), designated as priority items, that are currently
  278  due or will come due.
  279         2. Establishment of priority budgeting or zero-based
  280  budgeting in order to eliminate items that are not affordable.
  281         3. The prohibition of a level of operations which can be
  282  sustained only with nonrecurring revenues.
  283         (4)(a) Upon notification that one or more of the conditions
  284  in subsection (1) have occurred or will occur if action is not
  285  taken to assist the charter school exist, the charter school
  286  sponsor or the sponsor's designee and the Commissioner of
  287  Education shall contact the charter school governing body to
  288  determine what actions have been taken by the charter school
  289  governing body to resolve or prevent the condition. The
  290  Commissioner of Education charter school sponsor has the
  291  authority to require and approve a financial recovery plan, to
  292  be prepared by the charter school governing body, prescribing
  293  actions that will resolve or prevent the condition cause the
  294  charter school to no longer be subject to this section. The
  295  Department of Education shall establish guidelines for
  296  developing such plans.
  297         (b)Upon notification that one or more of the conditions in
  298  subsection (1) have occurred or will occur if action is not
  299  taken to assist the charter technical career center, the charter
  300  technical career center sponsor or the sponsor's designee and
  301  the Commissioner of Education shall contact the charter
  302  technical career center governing body to determine what actions
  303  have been taken by the governing body to resolve or prevent the
  304  condition. The Commissioner of Education may require and approve
  305  a financial recovery plan, to be prepared by the charter
  306  technical career center governing body, prescribing actions that
  307  will resolve or prevent the condition.
  308         (c)The Commissioner of Education shall determine if the
  309  charter school or charter technical career center needs a
  310  financial recovery plan to resolve the condition. If the
  311  Commissioner of Education determines that a financial recovery
  312  plan is needed, the charter school or charter technical career
  313  center is considered to be in a state of financial emergency.
  314  The Department of Education, with the involvement of sponsors,
  315  charter schools, and charter technical career centers, shall
  316  establish guidelines for developing a financial recovery plan.
  317         Section 6. Section 218.504, Florida Statutes, is amended to
  318  read:
  319         218.504 Cessation of state action.—The Governor or the
  320  Commissioner of Education, as appropriate, has the authority to
  321  terminate all state actions pursuant to ss. 218.50-218.504.
  322  Cessation of state action must not occur until the Governor or
  323  the Commissioner of Education, as appropriate, has determined
  324  that:
  325         (1) The local governmental entity, charter school, charter
  326  technical career center, or district school board:
  327         (a) Has established and is operating an effective financial
  328  accounting and reporting system.
  329         (b) Has resolved the conditions outlined in s. 218.503(1).
  330         (2) None of the conditions outlined in s. 218.503(1)
  331  exists.
  332         Section 7. Paragraph (b) of subsection (5), paragraphs (a),
  333  (b), and (g) of subsection (6), paragraph (a) of subsection (7),
  334  paragraph (d) of subsection (8), paragraphs (g) through (q) of
  335  subsection (9), and subsections (16), (17), (21), and (23) of
  336  section 1002.33, Florida Statutes, are amended, present
  337  subsection (24) of that section is redesignated as subsection
  338  (26), and new subsections (24) and (25) are added to that
  339  section, to read:
  340         1002.33 Charter schools.—
  341         (5) SPONSOR; DUTIES.—
  342         (b) Sponsor duties.—
  343         1.a. The sponsor shall monitor and review the charter
  344  school in its progress toward the goals established in the
  345  charter.
  346         b. The sponsor shall monitor the revenues and expenditures
  347  of the charter school and perform the duties provided in s.
  348  1002.345.
  349         c. The sponsor may approve a charter for a charter school
  350  before the applicant has secured space, equipment, or personnel,
  351  if the applicant indicates approval is necessary for it to raise
  352  working funds.
  353         d. The sponsor's policies shall not apply to a charter
  354  school unless mutually agreed to by both the sponsor and the
  355  charter school.
  356         e. The sponsor shall ensure that the charter is innovative
  357  and consistent with the state education goals established by s.
  358  1000.03(5).
  359         f. The sponsor shall ensure that the charter school
  360  participates in the state's education accountability system. If
  361  a charter school falls short of performance measures included in
  362  the approved charter, the sponsor shall report such shortcomings
  363  to the Department of Education.
  364         g. The sponsor shall not be liable for civil damages under
  365  state law for personal injury, property damage, or death
  366  resulting from an act or omission of an officer, employee,
  367  agent, or governing body of the charter school.
  368         h. The sponsor shall not be liable for civil damages under
  369  state law for any employment actions taken by an officer,
  370  employee, agent, or governing body of the charter school.
  371         i. The sponsor's duties to monitor the charter school shall
  372  not constitute the basis for a private cause of action.
  373         j. The sponsor shall not impose additional reporting
  374  requirements on a charter school without providing reasonable
  375  and specific justification in writing to the charter school.
  376         2. Immunity for the sponsor of a charter school under
  377  subparagraph 1. applies only with respect to acts or omissions
  378  not under the sponsor's direct authority as described in this
  379  section.
  380         3. Nothing contained in This paragraph does not waive shall
  381  be considered a waiver of sovereign immunity by a district
  382  school board’s sovereign immunity board.
  383         4. A community college may work with the school district or
  384  school districts in its designated service area to develop
  385  charter schools that offer secondary education. These charter
  386  schools must include an option for students to receive an
  387  associate degree upon high school graduation. District school
  388  boards shall cooperate with and assist the community college on
  389  the charter application. Community college applications for
  390  charter schools are not subject to the time deadlines outlined
  391  in subsection (6) and may be approved by the district school
  392  board at any time during the year. Community colleges may shall
  393  not report FTE for any students who receive FTE funding through
  394  the Florida Education Finance Program.
  395         (6) APPLICATION PROCESS AND REVIEW.—Charter school
  396  applications are subject to the following requirements:
  397         (a) A person or entity wishing to open a charter school
  398  shall prepare and submit an application on a model application
  399  form prepared by the Department of Education, in conjunction
  400  with the Florida Schools of Excellence Commission, which that:
  401         1. Demonstrates how the school will use the guiding
  402  principles and meet the statutorily defined purpose of a charter
  403  school.
  404         2. Provides a detailed curriculum plan that illustrates how
  405  students will be provided services to attain the Sunshine State
  406  Standards.
  407         3. Contains goals and objectives for improving student
  408  learning and measuring that improvement. These goals and
  409  objectives must indicate how much academic improvement students
  410  are expected to show each year, how success will be evaluated,
  411  and the specific results to be attained through instruction.
  412         4. Describes the reading curriculum and differentiated
  413  strategies that will be used for students reading at grade level
  414  or higher and a separate curriculum and strategies for students
  415  who are reading below grade level. A sponsor shall deny a
  416  charter if the school does not propose a reading curriculum that
  417  is consistent with effective teaching strategies that are
  418  grounded in scientifically based reading research.
  419         5. Contains an annual financial plan for each year
  420  requested by the charter for operation of the school for up to 5
  421  years. This plan must contain anticipated fund balances based on
  422  revenue projections, a spending plan based on projected revenues
  423  and expenses, and a description of controls that will safeguard
  424  finances and projected enrollment trends.
  425         6.Documents that the applicant has participated in the
  426  training required in subparagraph (g)2. A sponsor may require an
  427  applicant to provide additional information as an addendum to
  428  the charter school application described in this paragraph.
  429         (b) A sponsor shall receive and review all applications for
  430  a charter school using an evaluation instrument developed by the
  431  Department of Education. A sponsor may require an applicant to
  432  provide additional information as an addendum to this evaluation
  433  instrument. Beginning with the 2007-2008 school year, a sponsor
  434  shall receive and consider charter school applications received
  435  on or before August 1 of each calendar year for charter schools
  436  to be opened at the beginning of the school district's next
  437  school year, or to be opened at a time agreed to by the
  438  applicant and the sponsor. A sponsor may receive applications
  439  later than this date if it chooses. A sponsor may not charge an
  440  applicant for a charter any fee for the processing or
  441  consideration of an application, and a sponsor may not base its
  442  consideration or approval of an application upon the promise of
  443  future payment of any kind.
  444         1. In order to facilitate an accurate budget projection
  445  process, a sponsor shall be held harmless for FTE students who
  446  are not included in the FTE projection due to approval of
  447  charter school applications after the FTE projection deadline.
  448  In a further effort to facilitate an accurate budget projection,
  449  within 15 calendar days after receipt of a charter school
  450  application, a sponsor shall report to the Department of
  451  Education the name of the applicant entity, the proposed charter
  452  school location, and its projected FTE.
  453         2. In order to ensure fiscal responsibility, an application
  454  for a charter school shall include a full accounting of expected
  455  assets, a projection of expected sources and amounts of income,
  456  including income derived from projected student enrollments and
  457  from community support, and an expense projection that includes
  458  full accounting of the costs of operation, including start-up
  459  costs.
  460         3. A sponsor shall by a majority vote approve or deny an
  461  application no later than 60 calendar days after the application
  462  is received, unless the sponsor and the applicant mutually agree
  463  in writing to temporarily postpone the vote to a specific date,
  464  at which time the sponsor shall by a majority vote approve or
  465  deny the application. If the sponsor fails to act on the
  466  application, an applicant may appeal to the State Board of
  467  Education as provided in paragraph (c). If an application is
  468  denied, the sponsor shall, within 10 calendar days after such
  469  denial, articulate in writing the specific reasons, based upon
  470  good cause, supporting its denial of the charter application and
  471  shall provide the letter of denial and supporting documentation
  472  to the applicant and to the Department of Education supporting
  473  those reasons.
  474         4. For budget projection purposes, the sponsor shall report
  475  to the Department of Education the approval or denial of a
  476  charter application within 10 calendar days after such approval
  477  or denial. In the event of approval, the report to the
  478  Department of Education shall include the final projected FTE
  479  for the approved charter school.
  480         5. Upon approval of a charter application, the initial
  481  startup shall commence with the beginning of the public school
  482  calendar for the district in which the charter is granted unless
  483  the sponsor allows a waiver of this subparagraph provision for
  484  good cause.
  485         (g)1. The Department of Education shall offer or arrange
  486  for training and technical assistance to charter school
  487  applicants in developing business plans and estimating costs and
  488  income. This assistance shall address estimating startup costs,
  489  projecting enrollment, and identifying the types and amounts of
  490  state and federal financial assistance the charter school may
  491  will be eligible to receive. The department may provide other
  492  technical assistance to an applicant upon written request.
  493         2.A charter school applicant must participate in the
  494  training provided by the Department of Education before filing
  495  an application. However, a sponsor may require the charter
  496  school applicant to attend training provided by the sponsor in
  497  lieu of the department's training if the sponsor's training
  498  standards meet or exceed the standards developed by the
  499  Department of Education. The training shall include instruction
  500  in accurate financial planning and good business practices. If
  501  the applicant is a management company or other nonprofit
  502  organization, the charter school principal and the chief
  503  financial officer must also participate in the training.
  504         (7) CHARTER.—The major issues involving the operation of a
  505  charter school shall be considered in advance and written into
  506  the charter. The charter shall be signed by the governing body
  507  of the charter school and the sponsor, following a public
  508  hearing to ensure community input.
  509         (a) The charter shall address, and criteria for approval of
  510  the charter shall be based on:
  511         1. The school's mission, the students to be served, and the
  512  ages and grades to be included.
  513         2. The focus of the curriculum, the instructional methods
  514  to be used, any distinctive instructional techniques to be
  515  employed, and identification and acquisition of appropriate
  516  technologies needed to improve educational and administrative
  517  performance which include a means for promoting safe, ethical,
  518  and appropriate uses of technology which comply with legal and
  519  professional standards. The charter shall ensure that reading is
  520  a primary focus of the curriculum and that resources are
  521  provided to identify and provide specialized instruction for
  522  students who are reading below grade level. The curriculum and
  523  instructional strategies for reading must be consistent with the
  524  Sunshine State Standards and grounded in scientifically based
  525  reading research.
  526         3. The current incoming baseline standard of student
  527  academic achievement, the outcomes to be achieved, and the
  528  method of measurement that will be used. The criteria listed in
  529  this subparagraph shall include a detailed description for each
  530  of the following:
  531         a. How the baseline student academic achievement levels and
  532  prior rates of academic progress will be established.
  533         b. How these baseline rates will be compared to rates of
  534  academic progress achieved by these same students while
  535  attending the charter school.
  536         c. To the extent possible, how these rates of progress will
  537  be evaluated and compared with rates of progress of other
  538  closely comparable student populations.
  539  The district school board is required to provide academic
  540  student performance data to charter schools for each of their
  541  students coming from the district school system, as well as
  542  rates of academic progress of comparable student populations in
  543  the district school system.
  544         4. The methods used to identify the educational strengths
  545  and needs of students and how well educational goals and
  546  performance standards are met by students attending the charter
  547  school. Included in The methods shall provide is a means for the
  548  charter school to ensure accountability to its constituents by
  549  analyzing student performance data and by evaluating the
  550  effectiveness and efficiency of its major educational programs.
  551  Students in charter schools shall, at a minimum, participate in
  552  the statewide assessment program created under s. 1008.22.
  553         5. In secondary charter schools, a method for determining
  554  that a student has satisfied the requirements for graduation in
  555  s. 1003.43.
  556         6. A method for resolving conflicts between the governing
  557  body of the charter school and the sponsor.
  558         7. The admissions procedures and dismissal procedures,
  559  including the school's code of student conduct.
  560         8. The ways by which the school will achieve a
  561  racial/ethnic balance reflective of the community it serves or
  562  within the racial/ethnic range of other public schools in the
  563  same school district.
  564         9. The financial and administrative management of the
  565  school, including a reasonable demonstration of the professional
  566  experience or competence of those individuals or organizations
  567  applying to operate the charter school or those hired or
  568  retained to perform such professional services and the
  569  description of clearly delineated responsibilities and the
  570  policies and practices needed to effectively manage the charter
  571  school. A description of internal audit procedures and
  572  establishment of controls to ensure that financial resources are
  573  properly managed must be included. Both public sector and
  574  private sector professional experience shall be equally valid in
  575  such a consideration.
  576         10. The asset and liability projections required in the
  577  application which are incorporated into the charter and which
  578  shall be compared with information provided in the annual report
  579  of the charter school. The charter shall ensure that, if a
  580  charter school internal audit or annual financial audit reveals
  581  a state of financial emergency as defined in s. 218.503 or
  582  deficit financial position, the auditors are required to notify
  583  the charter school governing board, the sponsor, and the
  584  Department of Education. The internal auditor shall report such
  585  findings in the form of an exit interview to the principal or
  586  the principal administrator of the charter school and the chair
  587  of the governing board within 7 working days after finding the
  588  state of financial emergency or deficit position. A final report
  589  shall be provided to the entire governing board, the sponsor,
  590  and the Department of Education within 14 working days after the
  591  exit interview. When a charter school is in a state of financial
  592  emergency, the charter school shall file a detailed financial
  593  recovery plan with the sponsor. The department, with the
  594  involvement of both sponsors and charter schools, shall
  595  establish guidelines for developing such plans.
  596         11. A description of procedures that identify various risks
  597  and provide for a comprehensive approach to reduce the impact of
  598  losses; plans to ensure the safety and security of students and
  599  staff; plans to identify, minimize, and protect others from
  600  violent or disruptive student behavior; and the manner in which
  601  the school will be insured, including whether or not the school
  602  will be required to have liability insurance, and, if so, the
  603  terms and conditions thereof and the amounts of coverage.
  604         12. The term of the charter which shall provide for
  605  cancellation of the charter if insufficient progress has been
  606  made in attaining the student achievement objectives of the
  607  charter and if it is not likely that such objectives can be
  608  achieved before expiration of the charter. The initial term of a
  609  charter shall be for 4 or 5 years. In order to facilitate access
  610  to long-term financial resources for charter school
  611  construction, charter schools that are operated by a
  612  municipality or other public entity as provided by law are
  613  eligible for up to a 15-year charter, subject to approval by the
  614  district school board. A charter lab school is eligible for a
  615  charter for a term of up to 15 years. In addition, to facilitate
  616  access to long-term financial resources for charter school
  617  construction, charter schools that are operated by a private,
  618  not-for-profit, s. 501(c)(3) status corporation are eligible for
  619  up to a 15-year charter, subject to approval by the district
  620  school board. Such long-term charters remain subject to annual
  621  review and may be terminated during the term of the charter, but
  622  only according to the provisions set forth in subsection (8).
  623         13. The facilities to be used and their location.
  624         14. The qualifications to be required of the teachers and
  625  the potential strategies used to recruit, hire, train, and
  626  retain qualified staff to achieve best value.
  627         15. The governance structure of the school, including the
  628  status of the charter school as a public or private employer as
  629  required in paragraph (12)(i).
  630         16. A timetable for implementing the charter which
  631  addresses the implementation of each element thereof and the
  632  date by which the charter shall be awarded in order to meet this
  633  timetable.
  634         17. In the case of an existing public school that is being
  635  converted to charter status, alternative arrangements for
  636  current students who choose not to attend the charter school and
  637  for current teachers who choose not to teach in the charter
  638  school after conversion in accordance with the existing
  639  collective bargaining agreement or district school board rule in
  640  the absence of a collective bargaining agreement. However,
  641  alternative arrangements shall not be required for current
  642  teachers who choose not to teach in a charter lab school, except
  643  as authorized by the employment policies of the state university
  644  which grants the charter to the lab school.
  645         18.Full disclosure of the identity of all relatives
  646  employed by the charter school who are related to the charter
  647  school owner, president, chairperson of the governing board of
  648  directors, superintendent, governing board member, principal,
  649  assistant principal, or any other person employed by the charter
  650  school who has equivalent decisionmaking authority. For the
  651  purpose of this subparagraph, the term “relative” means father,
  652  mother, son, daughter, brother, sister, uncle, aunt, first
  653  cousin, nephew, niece, husband, wife, father-in-law, mother-in
  654  law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
  655  stepfather, stepmother, stepson, stepdaughter, stepbrother,
  656  stepsister, half brother, or half sister.
  657         (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.—
  658         (d) A charter may be terminated immediately if the sponsor
  659  determines that good cause has been shown or if the health,
  660  safety, or welfare of the students is threatened. The sponsor's
  661  determination is not subject to an informal hearing under
  662  paragraph (b) or pursuant to chapter 120. The sponsor shall
  663  notify in writing the charter school's governing body, the
  664  charter school principal, and the department if a charter is
  665  immediately terminated. The sponsor shall clearly identify the
  666  specific issues that resulted in the immediate termination and
  667  provide evidence of prior notification of issues resulting in
  668  the immediate termination when appropriate. The school district
  669  in which the charter school is located shall assume operation of
  670  the school under these circumstances. The charter school's
  671  governing board may, within 30 days after receiving the
  672  sponsor's decision to terminate the charter, appeal the decision
  673  pursuant to the procedure established in subsection (6).
  674         (9) CHARTER SCHOOL REQUIREMENTS.—
  675         (g)A charter school shall provide for an annual financial
  676  audit in accordance with s. 218.39. Financial audits that reveal
  677  a state of financial emergency as defined in s. 218.503 and are
  678  conducted by a certified public accountant or auditor in
  679  accordance with s. 218.39 shall be provided to the governing
  680  body of the charter school within 7 working days after finding
  681  that a state of financial emergency exists. When a charter
  682  school is found to be in a state of financial emergency by a
  683  certified public accountant or auditor, the charter school must
  684  file a detailed financial recovery plan with the sponsor within
  685  30 days after receipt of the audit.
  686         (g)(h) In order to provide financial information that is
  687  comparable to that reported for other public schools, charter
  688  schools are to maintain all financial records that which
  689  constitute their accounting system:
  690         1. In accordance with the accounts and codes prescribed in
  691  the most recent issuance of the publication titled “Financial
  692  and Program Cost Accounting and Reporting for Florida Schools”;
  693  or
  694         2. At the discretion of the charter school governing board,
  695  a charter school may elect to follow generally accepted
  696  accounting standards for not-for-profit organizations, but must
  697  reformat this information for reporting according to this
  698  paragraph.
  699  Charter schools shall provide annual financial report and
  700  program cost report information in the state-required formats
  701  for inclusion in district reporting in compliance with s.
  702  1011.60(1). Charter schools that are operated by a municipality
  703  or are a component unit of a parent nonprofit organization may
  704  use the accounting system of the municipality or the parent but
  705  must reformat this information for reporting according to this
  706  paragraph. A charter school shall provide a monthly financial
  707  statement to the sponsor. The monthly financial statement shall
  708  be in a form prescribed by the Department of Education.
  709         (h)(i) The governing board of the charter school shall
  710  annually adopt and maintain an operating budget.
  711         (i)(j) The governing body of the charter school shall
  712  exercise continuing oversight over charter school operations.
  713         (j)(k) The governing body of the charter school shall be
  714  responsible for:
  715         1. Ensuring that the charter school has retained the
  716  services of a certified public accountant or auditor for the
  717  annual financial audit, pursuant to s. 1002.345(2) paragraph
  718  (g), who shall submit the report to the governing body.
  719         2. Reviewing and approving the audit report, including
  720  audit findings and recommendations for the financial recovery
  721  plan.
  722         3.a.Performing the duties in s. 1002.345, including
  723  monitoring a corrective action plan.
  724         b. Monitoring a financial recovery plan in order to ensure
  725  compliance.
  726         4. Participating in governance training approved by the
  727  department which that must include government in the sunshine,
  728  conflicts of interest, ethics, and financial responsibility.
  729         (k)(l) The governing body of the charter school shall
  730  report its progress annually to its sponsor, which shall forward
  731  the report to the Commissioner of Education at the same time as
  732  other annual school accountability reports. The Department of
  733  Education shall develop a uniform, online annual accountability
  734  report to be completed by charter schools. This report shall be
  735  easy to utilize and contain demographic information, student
  736  performance data, and financial accountability information. A
  737  charter school shall not be required to provide information and
  738  data that is duplicative and already in the possession of the
  739  department. The Department of Education shall include in its
  740  compilation a notation if a school failed to file its report by
  741  the deadline established by the department. The report shall
  742  include at least the following components:
  743         1. Student achievement performance data, including the
  744  information required for the annual school report and the
  745  education accountability system governed by ss. 1008.31 and
  746  1008.345. Charter schools are subject to the same accountability
  747  requirements as other public schools, including reports of
  748  student achievement information that links baseline student data
  749  to the school's performance projections identified in the
  750  charter. The charter school shall identify reasons for any
  751  difference between projected and actual student performance.
  752         2. Financial status of the charter school which must
  753  include revenues and expenditures at a level of detail that
  754  allows for analysis of the charter school's ability to meet
  755  financial obligations and timely repayment of debt.
  756         3. Documentation of the facilities in current use and any
  757  planned facilities for use by the charter school for instruction
  758  of students, administrative functions, or investment purposes.
  759         4. Descriptive information about the charter school's
  760  personnel, including salary and benefit levels of charter school
  761  employees, the proportion of instructional personnel who hold
  762  professional or temporary certificates, and the proportion of
  763  instructional personnel teaching in-field or out-of-field.
  764         (l)(m) A charter school shall not levy taxes or issue bonds
  765  secured by tax revenues.
  766         (m)(n) A charter school shall provide instruction for at
  767  least the number of days required by law for other public
  768  schools, and may provide instruction for additional days.
  769         (n)(o) The director and a representative of the governing
  770  body of a charter school that has received a school grade of “D”
  771  under s. 1008.34(2) shall appear before the sponsor or the
  772  sponsor's staff at least once a year to present information
  773  concerning each contract component having noted deficiencies.
  774  The sponsor shall communicate at the meeting, and in writing to
  775  the director, the services provided to the school to help the
  776  school address its deficiencies.
  777         (o)(p) Upon notification that a charter school receives a
  778  school grade of “D” for 2 consecutive years or a school grade of
  779  “F” under s. 1008.34(2), the charter school sponsor or the
  780  sponsor's staff shall require the director and a representative
  781  of the governing body to submit to the sponsor for approval a
  782  school improvement plan to raise student achievement and to
  783  implement the plan. The sponsor has the authority to approve a
  784  school improvement plan that the charter school will implement
  785  in the following school year. The sponsor may also consider the
  786  State Board of Education's recommended action pursuant to s.
  787  1008.33(1) as part of the school improvement plan. The
  788  Department of Education shall offer technical assistance and
  789  training to the charter school and its governing body and
  790  establish guidelines for developing, submitting, and approving
  791  such plans.
  792         1. If the charter school fails to improve its student
  793  performance from the year immediately prior to the
  794  implementation of the school improvement plan, the sponsor shall
  795  place the charter school on probation and shall require the
  796  charter school governing body to take one of the following
  797  corrective actions:
  798         a. Contract for the educational services of the charter
  799  school;
  800         b. Reorganize the school at the end of the school year
  801  under a new director or principal who is authorized to hire new
  802  staff and implement a plan that addresses the causes of
  803  inadequate progress; or
  804         c. Reconstitute the charter school.
  805         2. A charter school that is placed on probation shall
  806  continue the corrective actions required under subparagraph 1.
  807  until the charter school improves its student performance from
  808  the year prior to the implementation of the school improvement
  809  plan.
  810         3. Notwithstanding any provision of this paragraph, the
  811  sponsor may terminate the charter at any time pursuant to the
  812  provisions of subsection (8).
  813         (p)(q) The director and a representative of the governing
  814  body of a graded charter school that has submitted a school
  815  improvement plan or has been placed on probation under paragraph
  816  (o) (p) shall appear before the sponsor or the sponsor's staff
  817  at least once a year to present information regarding the
  818  corrective strategies that are being implemented by the school
  819  pursuant to the school improvement plan. The sponsor shall
  820  communicate at the meeting, and in writing to the director, the
  821  services provided to the school to help the school address its
  822  deficiencies.
  823         (16) EXEMPTION FROM STATUTES.—
  824         (a) A charter school shall operate in accordance with its
  825  charter and shall be exempt from all statutes in chapters 1000
  826  1013. However, a charter school shall be in compliance with the
  827  following statutes in chapters 1000-1013:
  828         1. Those statutes specifically applying to charter schools,
  829  including this section.
  830         2. Those statutes pertaining to the student assessment
  831  program and school grading system.
  832         3. Those statutes pertaining to the provision of services
  833  to students with disabilities.
  834         4. Those statutes pertaining to civil rights, including s.
  835  1000.05, relating to discrimination.
  836         5. Those statutes pertaining to student health, safety, and
  837  welfare.
  838         6.Those statutes pertaining to the constitutional class
  839  size maximums pursuant to s. 1, Art. IX of the State
  840  Constitution, including s. 1003.03.
  841         (b) Additionally, a charter school shall be in compliance
  842  with the following statutes:
  843         1. Section 286.011, relating to public meetings and
  844  records, public inspection, and criminal and civil penalties.
  845         2. Chapter 119, relating to public records.
  846         (17) FUNDING.—Students enrolled in a charter school,
  847  regardless of the sponsorship, shall be funded as if they are in
  848  a basic program or a special program, the same as students
  849  enrolled in other public schools in the school district. Funding
  850  for a charter lab school shall be as provided in s. 1002.32.
  851  Beginning in the 2010-2011 school year, the maximum number of
  852  students eligible to be funded in any core-curricula classroom
  853  of any charter school shall be the maximum number prescribed in
  854  s. 1, Art. IX of the State Constitution.
  855         (a) Each charter school shall report its student enrollment
  856  to the sponsor as required in s. 1011.62, and in accordance with
  857  the definitions in s. 1011.61. The sponsor shall include each
  858  charter school's enrollment in the district's report of student
  859  enrollment. All charter schools submitting student record
  860  information required by the Department of Education shall comply
  861  with the Department of Education's guidelines for electronic
  862  data formats for such data, and all districts shall accept
  863  electronic data that complies with the Department of Education's
  864  electronic format.
  865         (b) The basis for the agreement for funding students
  866  enrolled in a charter school shall be the sum of the school
  867  district's operating funds from the Florida Education Finance
  868  Program as provided in s. 1011.62 and the General Appropriations
  869  Act, including gross state and local funds, discretionary
  870  lottery funds, and funds from the school district's current
  871  operating discretionary millage levy; divided by total funded
  872  weighted full-time equivalent students in the school district;
  873  multiplied by the weighted full-time equivalent students for the
  874  charter school. Charter schools whose students or programs meet
  875  the eligibility criteria in law shall be entitled to their
  876  proportionate share of categorical program funds included in the
  877  total funds available in the Florida Education Finance Program
  878  by the Legislature, including transportation. Total funding for
  879  each charter school shall be recalculated during the year to
  880  reflect the revised calculations under the Florida Education
  881  Finance Program by the state and the actual weighted full-time
  882  equivalent students reported by the charter school during the
  883  full-time equivalent student survey periods designated by the
  884  Commissioner of Education.
  885         (c) If the district school board is providing programs or
  886  services to students funded by federal funds, any eligible
  887  students enrolled in charter schools in the school district
  888  shall be provided federal funds for the same level of service
  889  provided students in the schools operated by the district school
  890  board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
  891  charter schools shall receive all federal funding for which the
  892  school is otherwise eligible, including Title I funding, not
  893  later than 5 months after the charter school first opens and
  894  within 5 months after any subsequent expansion of enrollment.
  895         (d) District school boards shall make timely and efficient
  896  payment and reimbursement to charter schools, including
  897  processing paperwork required to access special state and
  898  federal funding for which they may be eligible. The district
  899  school board may distribute funds to a charter school for up to
  900  3 months based on the projected full-time equivalent student
  901  membership of the charter school. Thereafter, the results of
  902  full-time equivalent student membership surveys shall be used in
  903  adjusting the amount of funds distributed monthly to the charter
  904  school for the remainder of the fiscal year. The payment shall
  905  be issued no later than 10 working days after the district
  906  school board receives a distribution of state or federal funds.
  907  If a warrant for payment is not issued within 10 working days
  908  after receipt of funding by the district school board, the
  909  school district shall pay to the charter school, in addition to
  910  the amount of the scheduled disbursement, interest at a rate of
  911  1 percent per month calculated on a daily basis on the unpaid
  912  balance from the expiration of the 10 working days until such
  913  time as the warrant is issued.
  914         (21) PUBLIC INFORMATION ON CHARTER SCHOOLS.—
  915         (a) The Department of Education shall provide information
  916  to the public, directly and through sponsors, both on how to
  917  form and operate a charter school and on how to enroll in a
  918  charter school schools once it is they are created. This
  919  information shall include a standard application format, charter
  920  format, evaluation instrument, and charter renewal format, which
  921  shall include the information specified in subsection (7) and
  922  shall be developed by consulting and negotiating with both
  923  school districts, the Florida Schools of Excellence Commission,
  924  and charter schools before implementation. The charter and
  925  charter renewal These formats shall be used as guidelines by
  926  charter school sponsors.
  927         (b)1.The Department of Education shall report student
  928  assessment data pursuant to s. 1008.34(3)(c) which is reported
  929  to schools that receive a school grade or student assessment
  930  data pursuant to s. 1008.341(3) which is reported to alternative
  931  schools that receive a school improvement rating to each charter
  932  school that:
  933         a.Does not receive a school grade pursuant to s. 1008.34
  934  or a school improvement rating pursuant to s. 1008.341; and
  935         b.Serves at least 10 students who are tested on the
  936  statewide assessment test pursuant to s. 1008.22.
  937         2.The charter school shall report the information in
  938  subparagraph 1. to each parent of a student at the charter
  939  school, the parent of a child on a waiting list for the charter
  940  school, the district in which the charter school is located, and
  941  the governing board of the charter school. This paragraph does
  942  not abrogate the provisions of s. 1002.22, relating to student
  943  records, or the requirements of 20 U.S.C. s. 1232g, the Family
  944  Educational Rights and Privacy Act.
  945         3.a.Pursuant to this paragraph, the Department of
  946  Education shall compare the charter school student performance
  947  data for each charter school in subparagraph 1. with the student
  948  performance data in traditional public schools in the district
  949  in which the charter school is located and other charter schools
  950  in the state. For alternative charter schools, the department
  951  shall compare the student performance data described in this
  952  paragraph with all alternative schools in the state. The
  953  comparative data shall be provided by the following grade
  954  groupings:
  955         (I)Grades 3 through 5;
  956         (II)Grades 6 through 8; and
  957         (III)Grades 9 through 11.
  958         b.Each charter school shall provide the information
  959  specified in this paragraph on its Internet website and also
  960  provide notice to the public at large in a manner provided by
  961  the rules of the State Board of Education. The State Board of
  962  Education shall adopt rules to administer the notice
  963  requirements of this subparagraph pursuant to ss. 120.536(1) and
  964  120.54. The website shall include, through links or actual
  965  content, other information related to school performance.
  966         (23) ANALYSIS OF CHARTER SCHOOL PERFORMANCE.—Upon receipt
  967  of the annual report required by paragraph (9)(k) (9)(l), the
  968  Department of Education shall provide to the State Board of
  969  Education, the Commissioner of Education, the Governor, the
  970  President of the Senate, and the Speaker of the House of
  971  Representatives an analysis and comparison of the overall
  972  performance of charter school students, to include all students
  973  whose scores are counted as part of the statewide assessment
  974  program, versus comparable public school students in the
  975  district as determined by the statewide assessment program
  976  currently administered in the school district, and other
  977  assessments administered pursuant to s. 1008.22(3).
  978         (24)RESTRICTION ON EMPLOYMENT OF RELATIVES.—
  979         (a)This subsection applies to charter school personnel in
  980  a charter school operated by a private entity. As used in this
  981  subsection, the term:
  982         1.“Charter school personnel” means a charter school owner,
  983  president, chairperson of the governing board of directors,
  984  superintendent, governing board member, principal, assistant
  985  principal, or any other person employed by the charter school
  986  who has equivalent decisionmaking authority and in whom is
  987  vested the authority, or to whom the authority has been
  988  delegated, to appoint, employ, promote, or advance individuals
  989  or to recommend individuals for appointment, employment,
  990  promotion, or advancement in connection with employment in a
  991  charter school, including the authority as a member of a
  992  governing body of a charter school to vote on the appointment,
  993  employment, promotion, or advancement of individuals.
  994         2.“Relative” means father, mother, son, daughter, brother,
  995  sister, uncle, aunt, first cousin, nephew, niece, husband, wife,
  996  father-in-law, mother-in-law, son-in-law, daughter-in-law,
  997  brother-in-law, sister-in-law, stepfather, stepmother, stepson,
  998  stepdaughter, stepbrother, stepsister, half brother, or half
  999  sister.
 1000         (b)Charter school personnel may not appoint, employ,
 1001  promote, or advance, or advocate for appointment, employment,
 1002  promotion, or advancement, in or to a position in the charter
 1003  school in which the personnel are serving or over which the
 1004  personnel exercises jurisdiction or control any individual who
 1005  is a relative. An individual may not be appointed, employed,
 1006  promoted, or advanced in or to a position in a charter school if
 1007  such appointment, employment, promotion, or advancement has been
 1008  advocated by charter school personnel who serve in or exercise
 1009  jurisdiction or control over the charter school and who is a
 1010  relative of the individual or if such appointment, employment,
 1011  promotion, or advancement is made by the governing board of
 1012  which a relative of the individual is a member.
 1013         (c)The approval of budgets does not constitute
 1014  “jurisdiction or control” for the purposes of this subsection.
 1015  Charter school personnel in schools operated by a municipality
 1016  or other public entity are subject to s. 112.3135.
 1017         (25)STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.—
 1018         (a)A member of a governing board of a charter school,
 1019  including a charter school operated by a private entity, is
 1020  subject to ss. 112.313(2), (3), (7), and (12) and 112.3143(3).
 1021         (b)A member of a governing board of a charter school
 1022  operated by a municipality or other public entity is subject to
 1023  s. 112.3144, which relates to the disclosure of financial
 1024  interests.
 1025         Section 8. Paragraphs (c), (d), and (h) of subsection (5),
 1026  paragraph (a) of subsection (7), paragraph (a) of subsection
 1027  (11), and subsection (12) of section 1002.335, Florida Statutes,
 1028  are amended to read:
 1029         1002.335 Florida Schools of Excellence Commission.—
 1030         (5) CHARTERING AUTHORITY.—
 1031         (c) For fiscal year 2007-2008 and for each fiscal year
 1032  thereafter, a district school board may seek to retain exclusive
 1033  authority to authorize charter schools within the geographic
 1034  boundaries of the school district by presenting to the State
 1035  Board of Education, on or before March 1 of the fiscal year
 1036  prior to that for which the exclusive authority is to apply, a
 1037  written resolution adopted by the district school board
 1038  indicating the intent to seek retain exclusive authority to
 1039  authorize charter schools. A district school board may seek to
 1040  retain the exclusive authority to authorize charter schools by
 1041  presenting to the state board the written resolution on or
 1042  before a date 60 days after establishment of the commission. The
 1043  written resolution shall be accompanied by a written description
 1044  addressing the elements described in paragraph (e). The district
 1045  school board shall provide a complete copy of the resolution,
 1046  including the description, to each charter school authorized by
 1047  the district school board on or before the date it submits the
 1048  resolution to the state board.
 1049         (d) A party may challenge the grant of exclusive authority
 1050  made by the State Board of Education pursuant to paragraph (e)
 1051  by filing with the state board a notice of challenge within 30
 1052  days after the state board grants initial exclusive authority.
 1053  The notice shall be accompanied by a specific written
 1054  description of the basis for the challenge. The challenging
 1055  party, at the time of filing notice with the state board, shall
 1056  provide a copy of the notice of challenge to the district school
 1057  board that has been granted exclusive authority. The state board
 1058  shall permit the district school board the opportunity to appear
 1059  and respond in writing to the challenge. The state board shall
 1060  make a determination upon the challenge within 60 days after
 1061  receiving the notice of challenge.
 1062         (h)1. A grant of exclusive authority by the State Board of
 1063  Education shall continue so long as a district school board
 1064  continues to comply with this section and has presented a
 1065  written resolution to the state board as set forth in paragraph
 1066  (c). A district school board that has been granted exclusive
 1067  authority is presumed to provide continuous fair and equitable
 1068  treatment of the charter schools in its district.
 1069         2.A charter school authorized by a district school board
 1070  within the previous 4 years may challenge the presumption in
 1071  subparagraph 1. by filing a request for a hearing between
 1072  January 1 and January 31 of any year. The request for a hearing
 1073  must state with specificity the basis for the challenge and must
 1074  include a statement certifying that a copy of the request was
 1075  provided to the district school board. If a legally sufficient
 1076  challenge is filed, the Commissioner of Education shall
 1077  designate a hearing officer and refer the matter to the hearing
 1078  officer for an informal proceeding. The hearing officer shall
 1079  provide findings of fact and conclusions of law to the
 1080  Commissioner of Education in the form of a recommended order to
 1081  the State Board of Education. The State Board of Education shall
 1082  enter a final order before June 30 of any year which determines
 1083  whether the district school board continues to provide fair and
 1084  equitable treatment to the charter schools in its district.
 1085         (7) COSPONSOR AGREEMENT.—
 1086         (a) Upon approval of a cosponsor, the commission and the
 1087  cosponsor shall enter into an agreement that defines the
 1088  cosponsor's rights and obligations and includes the following:
 1089         1. An explanation of the personnel, contractual and
 1090  interagency relationships, and potential revenue sources
 1091  referenced in the application as required in paragraph (6)(c).
 1092         2. Incorporation of The requirements of equal access for
 1093  all students, including any plans to provide food service or
 1094  transportation reasonably necessary to provide access to as many
 1095  students as possible.
 1096         3. Incorporation of The requirement to serve low-income,
 1097  low-performing, gifted, or underserved student populations.
 1098         4. An explanation of the academic and financial goals and
 1099  expected outcomes for the cosponsor's charter schools and the
 1100  method and plans by which they will be measured and achieved as
 1101  referenced in the application.
 1102         5. The conflict-of-interest policies referenced in the
 1103  application.
 1104         6. An explanation of the disposition of facilities and
 1105  assets upon termination and dissolution of a charter school
 1106  approved by the cosponsor.
 1107         7.a. A requirement that provision requiring the cosponsor
 1108  to annually appear before the commission and provide a report as
 1109  to the information provided in s. 1002.33(9)(k) pursuant to s.
 1110  1002.33(9)(l) for each of its charter schools.
 1111         b.A requirement that the cosponsor perform the duties
 1112  provided in s. 1002.345.
 1113         c.A requirement that the governing board perform the
 1114  duties provided in s. 1002.345, including monitoring the
 1115  corrective action plan.
 1116         8. A requirement provision requiring that the cosponsor
 1117  report the student enrollment in each of its sponsored charter
 1118  schools to the district school board of the county in which the
 1119  school is located.
 1120         9. A requirement provision requiring that the cosponsor
 1121  work with the commission to provide the necessary reports to the
 1122  State Board of Education.
 1123         10. Any other reasonable terms deemed appropriate by the
 1124  commission given the unique characteristics of the cosponsor.
 1125         (11) APPLICATION OF CHARTER SCHOOL STATUTE.—
 1126         (a) The provisions of s. 1002.33(7)-(12), (14), and (16)
 1127  (19), (21)(b), (24), and (25) shall apply to the commission and
 1128  the cosponsors and charter schools approved pursuant to this
 1129  section.
 1130         (12) ACCESS TO INFORMATION.—The commission shall provide
 1131  maximum access to information to all parents in the state. It
 1132  shall maintain information systems, including, but not limited
 1133  to, a user-friendly Internet website, that will provide
 1134  information and data necessary for parents to make informed
 1135  decisions and a link to the information provided in s.
 1136  1002.33(21)(b)3.b. At a minimum, the commission must provide
 1137  parents with information on its accountability standards, links
 1138  to schools of excellence throughout the state, and public
 1139  education programs available in the state.
 1140         Section 9. Subsections (4) and (5), paragraphs (d) and (f)
 1141  of subsection (6), paragraph (c) of subsection (10), paragraph
 1142  (f) of subsection (11), and subsection (13) of section 1002.34,
 1143  Florida Statutes, are amended to read:
 1144         1002.34 Charter technical career centers.—
 1145         (4) CHARTER.—A sponsor may designate centers as provided in
 1146  this section. An application to establish a center may be
 1147  submitted by a sponsor or another organization that is
 1148  determined, by rule of the State Board of Education, to be
 1149  appropriate. However, an independent school is not eligible for
 1150  status as a center. The charter must be signed by the governing
 1151  body of the center and the sponsor, and must be approved by the
 1152  district school board and community college board of trustees in
 1153  whose geographic region the facility is located. If a charter
 1154  technical career center is established by the conversion to
 1155  charter status of a public technical center formerly governed by
 1156  a district school board, the charter status of that center takes
 1157  precedence in any question of governance. The governance of the
 1158  center or of any program within the center remains with its
 1159  board of directors unless the board agrees to a change in
 1160  governance or its charter is revoked as provided in subsection
 1161  (15). Such a conversion charter technical career center is not
 1162  affected by a change in the governance of public technical
 1163  centers or of programs within other centers that are or have
 1164  been governed by district school boards. A charter technical
 1165  career center, or any program within such a center, that was
 1166  governed by a district school board and transferred to a
 1167  community college prior to the effective date of this act is not
 1168  affected by this provision. An applicant who wishes to establish
 1169  a center must submit to the district school board or community
 1170  college board of trustees, or a consortium of one or more of
 1171  each, an application on a form developed by the Department of
 1172  Education which that includes:
 1173         (a) The name of the proposed center.
 1174         (b) The proposed structure of the center, including a list
 1175  of proposed members of the board of directors or a description
 1176  of the qualifications for and method of their appointment or
 1177  election.
 1178         (c) The workforce development goals of the center, the
 1179  curriculum to be offered, and the outcomes and the methods of
 1180  assessing the extent to which the outcomes are met.
 1181         (d) The admissions policy and criteria for evaluating the
 1182  admission of students.
 1183         (e) A description of the staff responsibilities and the
 1184  proposed qualifications of the teaching staff.
 1185         (f) A description of the procedures to be implemented to
 1186  ensure significant involvement of representatives of business
 1187  and industry in the operation of the center.
 1188         (g) A method for determining whether a student has
 1189  satisfied the requirements for graduation specified in s.
 1190  1003.43 and for completion of a postsecondary certificate or
 1191  degree.
 1192         (h) A method for granting secondary and postsecondary
 1193  diplomas, certificates, and degrees.
 1194         (i) A description of and address for the physical facility
 1195  in which the center will be located.
 1196         (j) A method for of resolving conflicts between the
 1197  governing body of the center and the sponsor and between
 1198  consortium members, if applicable.
 1199         (k) A method for reporting student data as required by law
 1200  and rule.
 1201         (l)A statement that the applicant has participated in the
 1202  training provided by the Department of Education.
 1203         (m)The identity of all relatives employed by the charter
 1204  technical career center who are related to the center owner,
 1205  president, chairperson of the governing board of directors,
 1206  superintendent, governing board member, principal, assistant
 1207  principal, or any other person employed by the center who has
 1208  equivalent decisionmaking authority. As used in this paragraph,
 1209  the term “relative” means father, mother, son, daughter,
 1210  brother, sister, uncle, aunt, first cousin, nephew, niece,
 1211  husband, wife, father-in-law, mother-in-law, son-in-law,
 1212  daughter-in-law, brother-in-law, sister-in-law, stepfather,
 1213  stepmother, stepson, stepdaughter, stepbrother, stepsister, half
 1214  brother, or half sister.
 1215         (m)(l) Other information required by the district school
 1216  board or community college board of trustees.
 1217  Students at a center must meet the same testing and academic
 1218  performance standards as those established by law and rule for
 1219  students at public schools and public technical centers. The
 1220  students must also meet any additional assessment indicators
 1221  that are included within the charter approved by the district
 1222  school board or community college board of trustees.
 1223         (5) APPLICATION.—An application to establish a center must
 1224  be submitted by February 1 of the year preceding the school year
 1225  in which the center will begin operation. The sponsor must
 1226  review the application using an evaluation instrument developed
 1227  by the Department of Education and make a final decision on
 1228  whether to approve the application and grant the charter by
 1229  March 1, and may condition the granting of a charter on the
 1230  center's taking certain actions or maintaining certain
 1231  conditions. Such actions and conditions must be provided to the
 1232  applicant in writing. The district school board or community
 1233  college board of trustees is not required to issue a charter to
 1234  any person.
 1235         (6) SPONSOR.—A district school board or community college
 1236  board of trustees or a consortium of one or more of each may
 1237  sponsor a center in the county in which the board has
 1238  jurisdiction.
 1239         (d)1.The Department of Education shall offer or arrange
 1240  for training and technical assistance to applicants in
 1241  developing business plans and estimating costs and income. This
 1242  assistance shall address estimating startup costs, projecting
 1243  enrollment, and identifying the types and amounts of state and
 1244  federal financial assistance the center may be eligible to
 1245  receive. The training shall include instruction in accurate
 1246  financial planning and good business practices.
 1247         2.An applicant must participate in the training provided
 1248  by the Department of Education before filing an application. The
 1249  Department of Education may provide technical assistance to an
 1250  applicant upon written request.
 1251         (f) The sponsor shall monitor and review the center's
 1252  progress toward charter goals and shall monitor the center's
 1253  revenues and expenditures. The sponsor shall perform the duties
 1254  provided in s. 1002.345.
 1255         (10) EXEMPTION FROM STATUTES.—
 1256         (c) A center must comply with the antidiscrimination
 1257  provisions in of s. 1000.05 and the provisions in s. 1002.33(24)
 1258  which relate to the employment of relatives.
 1259         (11) FUNDING.—
 1260         (f) A center shall provide for an annual financial audit in
 1261  accordance with s. 218.39. A center shall provide a monthly
 1262  financial statement to the sponsor. The monthly financial
 1263  statement shall be in a form prescribed by the Department of
 1264  Education.
 1265         (13) BOARD OF DIRECTORS AUTHORITY.—The board of directors
 1266  of a center may decide matters relating to the operation of the
 1267  school, including budgeting, curriculum, and operating
 1268  procedures, subject to the center's charter. The board of
 1269  directors is responsible for performing the duties provided in
 1270  s. 1002.345, including monitoring the corrective action plan.
 1271  The board of directors must comply with s. 1002.33(25).
 1272         Section 10. Section 1002.345, Florida Statutes, is created
 1273  to read:
 1274         1002.345Determination of deteriorating financial
 1275  conditions and financial emergencies for charter schools and
 1276  charter technical career centers.—This section applies to
 1277  charter schools operating pursuant to ss. 1002.33 and 1002.335
 1278  and to charter technical career centers operating pursuant to s.
 1279  1002.34.
 1280         (1)EXPEDITED REVIEW; REQUIREMENTS.—
 1281         (a)A charter school or a charter technical career center
 1282  is subject to an expedited review by the sponsor if one of the
 1283  following occurs:
 1284         1.Failure to provide for an audit required by s. 218.39.
 1285         2.Failure to comply with reporting requirements pursuant
 1286  to s. 1002.33(9), s. 1002.335(7)(a)7., or s. 1002.34(14).
 1287         3.A deteriorating financial condition identified through
 1288  an annual audit pursuant to s. 218.39(5) or a monthly financial
 1289  statement pursuant to s. 1002.33(9)(g) or s. 1002.34(11)(f).
 1290  “Deteriorating financial condition” means a circumstance that
 1291  significantly impairs the ability of a charter school or a
 1292  charter technical career center to generate enough revenues to
 1293  meet its expenditures without causing the occurrence of a
 1294  condition described in s. 218.503(1).
 1295         4.Notification pursuant to s. 218.503(2) that one or more
 1296  of the conditions specified in s. 218.503(1) have occurred or
 1297  will occur if action is not taken to assist the charter school
 1298  or charter technical career center.
 1299         (b)A sponsor shall notify the governing board within 7
 1300  business days after one or more of the conditions specified in
 1301  paragraph (a) occur.
 1302         (c)The governing board and the sponsor shall develop a
 1303  corrective action plan and file the plan with the Commissioner
 1304  of Education within 30 business days after notification is
 1305  received as provided in paragraph (b). If the governing board
 1306  and the sponsor are unable to agree on a corrective action plan,
 1307  the Commissioner of Education shall determine the components of
 1308  the plan. The governing board shall implement such plan.
 1309         (d)The governing board shall include the corrective action
 1310  plan and the status of its implementation in the annual progress
 1311  report to the sponsor which is required pursuant to s.
 1312  1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
 1313         (e)If the governing board fails to implement the
 1314  corrective action plan within 1 year after one or more of the
 1315  conditions specified in paragraph (a) occur, the State Board of
 1316  Education shall prescribe any steps necessary for the charter
 1317  school or the charter technical career center to comply with
 1318  state requirements.
 1319         (f)The chair of the governing board shall annually appear
 1320  before the State Board of Education and report on the
 1321  implementation of the State Board of Education's requirements.
 1322         (2)FINANCIAL EMERGENCY; REQUIREMENTS.—
 1323         (a)1.If a financial audit conducted by a certified public
 1324  accountant in accordance with s. 218.39 reveals that one or more
 1325  of the conditions in s. 218.503(1) have occurred or will occur
 1326  if action is not taken to assist the charter school or charter
 1327  technical career center, the auditor shall notify the governing
 1328  board of the charter school or charter technical career center,
 1329  as appropriate, the sponsor, and the Commissioner of Education
 1330  within 7 business days after the finding is made.
 1331         2.If the charter school or charter technical career center
 1332  is found to be in a state of financial emergency pursuant to s.
 1333  218.503(4), the charter school or charter technical career
 1334  center shall file a financial recovery plan pursuant to s.
 1335  218.503 with the sponsor and the Commissioner of Education
 1336  within 30 days after being notified by the Commissioner of
 1337  Education that a financial recovery plan is needed.
 1338         (b)The governing board shall include the financial
 1339  recovery plan and the status of its implementation in the annual
 1340  progress report to the sponsor which is required under s.
 1341  1002.33(9)(k), s. 1002.335(7)(a)7., or s. 1002.34(14).
 1342         (3)REPORT.—The Commissioner of Education shall annually
 1343  report to the State Board of Education each charter school and
 1344  charter technical career center that is subject to a financial
 1345  recovery plan or a corrective action plan under this section.
 1346         (4)RULES.—The State Board of Education shall adopt rules
 1347  pursuant to ss. 120.536(1) and 120.54 for developing financial
 1348  recovery and corrective action plans, defining a deteriorating
 1349  financial condition pursuant to subparagraph (1)(a)3., and
 1350  establishing procedures for determining a deteriorating
 1351  financial condition pursuant to subparagraph (1)(a)3. and s.
 1352  218.39(5). In adopting the rules, the State Board of Education
 1353  may obtain technical assistance from the Auditor General.
 1354         (5)TECHNICAL ASSISTANCE.—The Department of Education shall
 1355  provide technical assistance to charter schools, charter
 1356  technical career centers, governing boards, and sponsors in
 1357  developing financial recovery and corrective action plans.
 1358         (6)FAILURE TO CORRECT DEFICIENCIES.—The sponsor may decide
 1359  not to renew or may terminate a charter if the charter school or
 1360  charter technical career center fails to correct the
 1361  deficiencies noted in the corrective action plan within 1 year
 1362  after being notified of the deficiencies or exhibits one or more
 1363  financial emergency conditions specified in s. 218.503 for 2
 1364  consecutive years. This subsection does not affect a sponsor's
 1365  authority to terminate or not renew a charter pursuant to s.
 1366  1002.33(8).
 1367         Section 11. This act shall take effect July 1, 2009.