Florida Senate - 2016                                    SB 1130
       
       
        
       By Senator Montford
       
       3-00439-16                                            20161130__
    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
    4         legislative findings; providing the purpose of the
    5         act; creating s. 1002.323, F.S.; defining terms;
    6         creating s. 1002.324, F.S.; specifying the duties and
    7         responsibilities of the Department of Education with
    8         respect to the issuance of statements of need and
    9         exemptions; requiring the State Board of Education to
   10         adopt certain rules; requiring the state board to
   11         allow stakeholder participation in rule development;
   12         creating s. 1002.325, F.S.; requiring an applicant to
   13         file a letter of intent with the department before
   14         applying for a statement of need; prescribing required
   15         content for a letter of intent; requiring the
   16         department to publish notice of filing of letters of
   17         intent in the Florida Administrative Register;
   18         specifying the content of a statement of need
   19         application; requiring the state board to adopt a rule
   20         regarding timeframes; establishing procedures
   21         governing the submission and review of applications;
   22         authorizing the department to hold a public hearing
   23         regarding a proposed project under certain
   24         circumstances; authorizing an applicant to submit a
   25         response to a written statement of opposition;
   26         specifying evaluation criteria for applications;
   27         authorizing the department to assess fees on
   28         applications; creating s. 1002.326, F.S.; establishing
   29         procedures for the department to issue or deny
   30         statements of need; requiring publication of the
   31         department’s report and notice of intent; authorizing
   32         specified parties to file a request for an
   33         administrative hearing; requiring the department to
   34         issue a final order within a certain timeframe of an
   35         administrative law judge’s recommended order;
   36         authorizing an applicant to take legal action to
   37         compel the department to act under certain
   38         circumstances; authorizing a party to an
   39         administrative hearing to seek judicial review;
   40         authorizing the reviewing court to award attorney fees
   41         and court costs under certain circumstances; creating
   42         s. 1002.327, F.S.; specifying applicability of the
   43         statement of need review process; authorizing
   44         expedited review and exemption from review under
   45         certain circumstances; creating s. 1002.328, F.S.;
   46         authorizing the department to conditionally issue a
   47         statement of need; authorizing a statement holder to
   48         apply to the department for a modification of
   49         conditions; requiring the state board to specify
   50         factors constituting good cause for modification by
   51         rule; authorizing the department to assess a fine
   52         against a noncompliant statement of need or exemption
   53         holder; requiring fine proceeds to be deposited into
   54         the State School Trust Fund; specifying the length of
   55         validity for a statement of need; requiring the
   56         department to monitor the progress of a statement
   57         holder; requiring the department to extend the length
   58         of validity for a statement of need under certain
   59         circumstances; creating s. 1002.3281, F.S.;
   60         prohibiting a person from undertaking a project
   61         subject to review without holding a statement of need;
   62         providing a penalty; creating s. 1002.3282, F.S.;
   63         prohibiting the transfer of a statement of need;
   64         providing a penalty; creating s. 1002.329, F.S.;
   65         authorizing the department to seek injunctive relief;
   66         amending s. 1002.33, F.S.; conforming provisions to
   67         changes made by the act; providing an effective date.
   68          
   69  Be It Enacted by the Legislature of the State of Florida:
   70  
   71         Section 1. Section 1002.322, Florida Statutes, is created
   72  to read:
   73         1002.322 Short title; legislative findings; purpose.—
   74         (1) Sections 1002.322-1002.329 may be cited as the “Charter
   75  School Excellence Act.”
   76         (2) The Legislature finds that:
   77         (a) Section 1, Art. IX of the State Constitution mandates a
   78  uniform, efficient, safe, secure, and high quality system of
   79  free public schools. Thus, a uniform and coherent system of
   80  public education which is both equitable and fiscally efficient
   81  is imperative. All charter schools in this state are public
   82  schools and are, therefore, subject to the constitutional
   83  mandate.
   84         (b) The number of charter schools in this state has grown
   85  steadily since the charter schools’ inception in 1996 and
   86  exceeded 640 in the 2014-2015 school year. Charter school
   87  enrollment grew to more than 251,000 students in the 2014-2015
   88  school year. A charter school can be independently opened and
   89  operated by individuals, a municipality, or a legal entity
   90  organized under the laws of this state. A volunteer governing
   91  board, rather than a district school board composed of elected
   92  representatives, controls each individual charter school.
   93         (c) The application process for new charter schools is
   94  biased toward encouraging unmitigated growth of the charter
   95  school industry, rather than focusing on the specific needs of
   96  students or the safeguarding of taxpayer dollars. Unlike many
   97  other states, Florida has not established a maximum cap on the
   98  number of charter schools that are authorized to operate.
   99         (d) The lack of transparency and local control over charter
  100  schools has resulted in the inefficient use of taxpayer dollars.
  101  School districts are limited in their ability to intervene in
  102  the management or instruction of an individual charter school,
  103  and this limited oversight of charter schools has exacerbated
  104  the problem of failing charter schools. Delaying intervention
  105  into a failing charter school’s operation has repeatedly
  106  resulted in the failure of the charter school and the resulting
  107  displacement of students. In many instances, school districts
  108  have been unable to recoup taxpayer dollars invested in a failed
  109  charter school. Additionally, current standards of performance
  110  for charter schools, compared to the standards applied to
  111  traditional public schools, are inadequate, given a charter
  112  school’s ability to target and select particular students for
  113  enrollment.
  114         (e) For-profit companies that provide charter schools with
  115  various administrative services can consume a significant
  116  portion of the school’s budget, which ultimately results in less
  117  money going toward student education. Such administrative
  118  services often duplicate services already available through the
  119  school districts and are an inefficient use of taxpayer dollars.
  120         (f) Many charter schools have failed to assume the role
  121  that was originally envisioned for them in the original
  122  authorizing legislation. Instead, they offer the same
  123  instructional services provided in traditional public schools
  124  located in the same neighborhood. Duplicative programs in
  125  charter schools which largely mirror programs available in
  126  traditional public schools are burdens on the already
  127  financially strained public school system. The state’s charter
  128  schools should complement, and not duplicate, the state’s
  129  traditional public schools.
  130         (3) The purpose of this act is to develop and implement a
  131  program that requires statements of need for charter schools to
  132  ensure that such schools provide innovative educational services
  133  not provided by traditional public schools in the community,
  134  that such schools do not duplicate existing services provided by
  135  school districts and traditional public schools, and that such
  136  schools are responsible stewards of taxpayer money.
  137         Section 2. Section 1002.323, Florida Statutes, is created
  138  to read:
  139         1002.323 Definitions.—As used in ss. 1002.322-1002.329, the
  140  term:
  141         (1) “Capital expenditure” means an expenditure, including
  142  an expenditure for a construction project undertaken by a
  143  charter school, which, under generally accepted accounting
  144  principles, is not chargeable as an expense of operation and
  145  maintenance; which is made to change the student enrollment
  146  capacity of the charter school or substantially change the
  147  educational services or grade levels of the charter school; and
  148  which includes the cost of the studies, surveys, designs, plans,
  149  working drawings, specifications, initial financing costs, and
  150  other activities essential to the acquisition, improvement,
  151  expansion, or replacement of the plant and equipment.
  152         (2) “Charter school” means a school that meets the
  153  requirements of s. 1002.33 and that has been issued a statement
  154  of need or an exemption.
  155         (3) “Commenced construction” means initiation of and
  156  continuous activities beyond site preparation associated with
  157  erecting or modifying a charter school, including procuring a
  158  building permit, securing an executed owner-contractor agreement
  159  or an irrevocable or binding forced account, or actually
  160  undertaking the building of the foundation with steel
  161  installation and concrete placement.
  162         (4) “Department” means the Department of Education.
  163         (5) “Exemption” means an exemption granted to a school that
  164  would otherwise require a statement of need.
  165         (6) “Expedited review” means the process by which a
  166  statement of need application is not subject to the review and
  167  letter of intent requirements in s. 1002.325.
  168         (7) “State board” means the State Board of Education.
  169         (8) “Statement of need” means a written statement issued by
  170  the department evidencing the need for a new, converted,
  171  expanded, or otherwise significantly modified charter school in
  172  a specific school district.
  173         Section 3. Section 1002.324, Florida Statutes, is created
  174  to read:
  175         1002.324 Duties and responsibilities of department; rules.—
  176         (1) The department shall be the sole agency that may issue,
  177  revoke, or deny statements of need or exemptions in accordance
  178  with applicable law and rules.
  179         (2) Before determining that there is a need for additional
  180  charter schools in a school district, the department shall
  181  assess whether a specific need can be satisfied through existing
  182  traditional public schools and charter schools.
  183         (3) The state board shall establish by rule:
  184         (a) Uniform need methodologies for charter schools. In
  185  developing such methodologies, the state board shall, at a
  186  minimum, consider full-time equivalent student population
  187  trends, student demographics, the number of existing charter
  188  schools already operational in a school district, the need for
  189  additional programs and educational services for students which
  190  may be met by a charter school, and the need for innovative
  191  educational services.
  192         (b) A full-time equivalent student methodology with a goal
  193  of maintaining an average enrollment rate of 95 percent.
  194         (4) In developing rules, the state board shall involve all
  195  stakeholders to the greatest extent practicable, including
  196  school district personnel, charter school operators, and
  197  statewide organizations that represent public school educators
  198  and charter schools.
  199         Section 4. Section 1002.325, Florida Statutes, is created
  200  to read:
  201         1002.325 Application process and review for statements of
  202  need.—
  203         (1) LETTERS OF INTENT.—
  204         (a) At least 30 days before filing an application for a
  205  statement of need, a prospective applicant must file a letter of
  206  intent with the department stating the applicant’s intent to
  207  open a charter school, subject to review by the department. The
  208  letter of intent must also be filed with the district school
  209  board of the school district in which the proposed charter
  210  school would be located.
  211         (b) A letter of intent must describe the proposed charter
  212  school; specify the projected number of full-time equivalent
  213  students to be enrolled; and identify the applicant, the
  214  specific location of the charter school, and the educational
  215  services to be provided.
  216         (c) Within 21 days after receipt of the letter of intent,
  217  the department shall publish a notice of the filing of the
  218  letter of intent in the Florida Administrative Register. A
  219  notice published under this paragraph must specify due dates
  220  applicable to the timetable or cycle for filing applications and
  221  for requesting an administrative hearing.
  222         (2) APPLICATION.—An application for a statement of need
  223  must include:
  224         (a) A detailed description of the proposed charter school
  225  project and a statement of purpose and need in relation to the
  226  criteria used by the department in reviewing applications.
  227         (b) A statement of the financial resources needed by and
  228  available to the applicant to complete the proposed project. The
  229  statement must include:
  230         1. A complete listing of all capital projects, including
  231  facility acquisitions applied for, pending, approved, or
  232  underway in this state or any state at the time of application,
  233  regardless of whether the state has a statement of need program.
  234  This listing must include the applicant’s actual or proposed
  235  financial commitment to those projects and an assessment of
  236  their impact on the applicant’s ability to provide adequate
  237  funding for the proposed project.
  238         2. A detailed listing of the needed capital expenditures,
  239  including sources of funds.
  240         3. A detailed financial projection, including a statement
  241  of the projected revenue and expenses for the first 2 years of
  242  operation after completion of the proposed project. This
  243  statement must include a detailed evaluation of the impact of
  244  the proposed project on the cost of other services provided by
  245  the applicant.
  246         (c) An audited financial statement of the applicant or the
  247  applicant’s parent corporation if the applicant does not have
  248  audited financial statements. In an application submitted by an
  249  existing charter school, financial condition documentation must
  250  include, but need not be limited to, a balance sheet and a
  251  profit-and-loss statement for the 2 previous fiscal years’
  252  operation.
  253         (3) REVIEW OF APPLICATIONS.—
  254         (a) The state board shall adopt a rule that establishes a
  255  timetable or cycle basis for the submission and review of
  256  statement of need applications. The timetable or cycle for the
  257  submission and review of statement of need applications must be
  258  aligned and consistent with the charter school application and
  259  review process established in s. 1002.33. The department shall
  260  review applications on a timely basis and provide for all
  261  completed applications and shall consider at least annually all
  262  completed applications.
  263         (b) Within 15 days after the applicable filing deadline for
  264  the review cycle, the department shall determine if the
  265  application is complete. If the application is incomplete, the
  266  department shall request specific information from the applicant
  267  necessary to complete the application; however, the department
  268  may make only one such request. If the requested information is
  269  not filed with the department within 21 days after receipt of
  270  the department’s request, the application shall be withdrawn
  271  from consideration.
  272         (c) Upon the request of any applicant or substantially
  273  affected person, including other charter schools and the
  274  district school board, within 14 days after notice that an
  275  application has been filed, a public hearing may be held at the
  276  department’s discretion if the department determines that a
  277  proposed project involves issues of great public interest. In
  278  such cases, the department shall attend the public hearing. The
  279  public hearing shall allow applicants and other interested
  280  parties reasonable time to present their positions and to
  281  present rebuttal information. The department shall maintain a
  282  recorded transcript of the hearing. A public hearing shall be
  283  held at the local school district level within 21 days after the
  284  application is deemed complete.
  285         (d) If a written statement of opposition has been timely
  286  filed with the department by an individual regarding a statement
  287  of need application, the applicant may submit a written response
  288  to the department. Such response must be received by the
  289  department within 10 days after the written statement of
  290  opposition is received by the department.
  291         (4) CRITERIA.—The evaluation criteria for applications
  292  submitted to the department must include the following:
  293         (a) The need for the proposed charter school and
  294  educational services.
  295         (b) The availability of the proposed educational services
  296  in existing public schools and charter schools in the school
  297  district.
  298         (c) The ability of the applicant to provide quality
  299  educational services and the applicant’s record of providing
  300  quality educational services, if applicable.
  301         (d) The availability of resources, including teachers and
  302  administrators, management personnel, and funds for capital and
  303  operating expenditures, for project accomplishment and
  304  operation.
  305         (e) The extent to which the proposed educational services
  306  will enhance the educational options in the school district and
  307  are not duplicative of existing educational services.
  308         (f) The immediate and long-term financial feasibility and
  309  fiscal efficiency of the charter school.
  310         (g) The costs and methods of the proposed construction,
  311  including whether the charter school will be in compliance with
  312  the State Requirements for Educational Facilities approved by
  313  the state board, and if not, whether the charter school will be
  314  in compliance with any applicable state and local building
  315  codes.
  316         (h) The applicant’s record of providing educational
  317  services to students who are from lower socioeconomic
  318  backgrounds, who are low performing, or who have disabilities.
  319         (5) FEES.—The department shall assess a fee on each
  320  application for a statement of need as follows:
  321         (a) A minimum base fee of $10,000 per application.
  322         (b) In addition to the base fee, $50 for each full-time
  323  equivalent student projected to enroll based on the enrollment
  324  capacity of the applicant school. The total fee assessed
  325  pursuant to paragraph (a) and this paragraph may not exceed
  326  $50,000 in the aggregate.
  327         (c) The department shall reduce the fee assessed pursuant
  328  to paragraph (b) if the fees collected are projected to exceed
  329  the cost of administering the statement of need program.
  330         Section 5. Section 1002.326, Florida Statutes, is created
  331  to read:
  332         1002.326 Disposition of applications; administrative
  333  hearing; judicial review.—
  334         (1) The department’s review of and final action on
  335  applications submitted must be in accordance with the criteria
  336  specified in s. 1002.325(4) and any applicable state board
  337  rules.
  338         (2) Within 60 days after all of the applications in a
  339  review cycle are determined to be complete, the department shall
  340  issue a report and notice of intent specifying statements of
  341  need that are issued or denied for the review cycle. The
  342  department’s report shall specify its findings of fact and
  343  determinations upon which its decision is based. If the
  344  department intends to issue a statement of need, the report and
  345  notice of intent must also include any conditions that the
  346  department intends to attach to the statement of need. The state
  347  board shall designate by rule a senior staff person, other than
  348  the person who issues the final order and notice of intent, to
  349  issue the report.
  350         (3) The department shall publish the notice of intent in
  351  the Florida Administrative Register within 14 days after
  352  issuance of the notice.
  353         (4) If an administrative hearing is not requested pursuant
  354  to subsection (5), the report and the notice of intent become
  355  the final order of the department. The department shall provide
  356  a copy of the final order to the appropriate district school
  357  board.
  358         (5) Within 21 days after publication of the report and
  359  notice of intent, any person authorized to participate in a
  360  hearing may file a request for an administrative hearing.
  361  Failure to file a request for hearing within 21 days after
  362  publication of the report and notice of intent constitutes a
  363  waiver of the right to a hearing and a waiver of the right to
  364  contest the final decision of the department. A copy of the
  365  request for hearing shall be served on the applicant.
  366         (a) Hearings must be held in the county in which the
  367  charter school would be located unless the administrative law
  368  judge determines that changing the location will facilitate the
  369  proceedings. The department shall assign proceedings that
  370  require hearings to the Division of Administrative Hearings of
  371  the Department of Management Services within 10 days after the
  372  time has expired for requesting a hearing. Except upon unanimous
  373  consent of the parties or upon the granting by the
  374  administrative law judge of a motion of continuance, a hearing
  375  shall commence within 60 days after the administrative law judge
  376  has been assigned, and a continuance may not be granted after
  377  commencement of the proceedings absent a finding of
  378  extraordinary circumstances by the administrative law judge. All
  379  parties, except the department, shall bear their own expense of
  380  preparing a transcript. In any application for a statement of
  381  need which is referred to the Division of Administrative
  382  Hearings for a hearing, the administrative law judge shall
  383  complete and submit to the parties a recommended order as
  384  provided in ss. 120.569 and 120.57. The recommended order shall
  385  be issued within 30 days after receipt of the proposed
  386  recommended orders or the deadline for submission of such
  387  proposed recommended orders, whichever is earlier. The division
  388  shall adopt procedures for administrative hearings which
  389  maximize the use of stipulated facts and shall provide for the
  390  admission of prepared testimony.
  391         (b) The department shall issue its final order within 45
  392  days after receipt of the recommended order. If the department
  393  fails to take action within such time, or as otherwise agreed to
  394  by the applicant and the department, the applicant may take
  395  appropriate legal action to compel the department to act. When
  396  making a determination on an application for a statement of
  397  need, the department is specifically exempt from the time
  398  limitations provided in s. 120.60(1).
  399         (6)(a) A party to an administrative hearing for an
  400  application for a statement of need has the right, within 30
  401  days after the date of the final order, to seek judicial review
  402  in the appropriate district court of appeal pursuant to s.
  403  120.68. The department shall be a party in any such proceeding.
  404         (b) In such judicial review, the court shall affirm the
  405  final order of the department unless the decision is arbitrary
  406  or capricious or does not comply with the requirements for a
  407  statement of need.
  408         (c) The court may award reasonable attorney fees and costs
  409  to the prevailing party if the court finds that there was a
  410  complete absence of a justiciable issue of law or fact raised by
  411  the losing party.
  412         Section 6. Section 1002.327, Florida Statutes, is created
  413  to read:
  414         1002.327Applicability; expedited review; exemption.—
  415         (1) Beginning July 1, 2017, all charter schools described
  416  in this subsection are subject to review and must file an
  417  application for a statement of need with the department. The
  418  department is exclusively responsible for determining whether a
  419  charter school project is subject to review. Schools subject to
  420  review include:
  421         (a)A charter school that is newly constructed or newly
  422  established, including a replacement charter school, if the
  423  proposed project site is not located on the same site as, or
  424  within 1 mile of, the existing charter school.
  425         (b) An existing traditional public school proposed to be
  426  converted to a charter school.
  427         (c) An existing charter school that increases the number of
  428  students enrolled or the enrollment capacity.
  429         (d) An existing charter school that increases the number of
  430  grades being provided educational services.
  431         (2) All charter schools that meet the criteria specified in
  432  this subsection are eligible for an expedited review of an
  433  application for a statement of need:
  434         (a) Transfer of a previously issued statement of need. A
  435  subsequent purchaser of a charter school that is not yet
  436  operational, but has previously been issued a statement of need,
  437  may acquire the school’s statement of need without a transfer;
  438         (b) Replacement of an existing charter school;
  439         (c) Expansion of a charter school designated as a high
  440  performing charter school in accordance with s. 1002.331; or
  441         (d) Replication of a high-performing charter school in a
  442  high-performing charter school system.
  443         (3) An applicant may submit a request for exemption from
  444  subsection (1) to the department. Any exemption request must
  445  specifically document why an exemption is appropriate in a
  446  particular circumstance.
  447         Section 7. Section 1002.328, Florida Statutes, is created
  448  to read:
  449         1002.328 Conditions and monitoring.—
  450         (1)(a) The department may conditionally issue a statement
  451  of need, predicated upon statements of intent expressed by an
  452  applicant in the application for a statement of need. Any
  453  conditions imposed on a statement of need based on such
  454  statements of intent shall be specified on the face of the
  455  statement of need approval.
  456         (b) A holder of a statement of need may apply to the
  457  department for a modification of conditions imposed under
  458  paragraph (a). If the holder of the statement of need shows good
  459  cause why the statement of need should be modified, the
  460  department shall reissue the statement of need with such
  461  modifications as may be appropriate. The state board shall
  462  define by rule the factors constituting good cause for
  463  modification of a statement of need.
  464         (c)If a holder of a statement of need or a charter school
  465  that is granted an exemption fails to comply with a condition
  466  upon which the issuance of the statement of need or exemption is
  467  predicated, the department may assess an administrative fine
  468  against the holder of the statement of need or the charter
  469  school in an amount not to exceed $1,000 per each day of
  470  noncompliance. Failure to annually report compliance with any
  471  condition upon which the issuance of the statement of need or
  472  exemption is predicated constitutes noncompliance. In assessing
  473  the penalty, the department shall take into account as
  474  mitigation the degree of noncompliance. Proceeds of such
  475  penalties shall be deposited into the State School Trust Fund.
  476         (2)(a)A statement of need terminates 18 months after the
  477  date of issuance unless the applicant has commenced construction
  478  on a project that requires construction or unless the applicant
  479  has incurred an enforceable capital expenditure commitment on a
  480  project that does not require construction. The department shall
  481  monitor the progress of the holder of the statement of need in
  482  meeting the timetable for school development specified in the
  483  application and may revoke the statement of need if the holder
  484  of the statement of need is not meeting such timetable and is
  485  not making a good faith effort, as defined by rule, to meet the
  486  timetable.
  487         (b)The statement of need validity period for a project
  488  shall be extended by the department if the applicant
  489  demonstrates to the satisfaction of the department that the
  490  applicant has made a good faith attempt at commencing
  491  construction, but the project is delayed by litigation or by
  492  governmental action or inaction with respect to regulations or
  493  permitting which precludes commencing construction.
  494         Section 8. Section 1002.3281, Florida Statutes, is created
  495  to read:
  496         1002.3281 Statement of need required; penalties.—It is
  497  unlawful for an individual to undertake a charter school project
  498  that is subject to review without a valid statement of need. An
  499  individual who violates this section commits a misdemeanor of
  500  the second degree, punishable as provided in s. 775.082 or s.
  501  775.083. Each day of continuing violation shall be considered a
  502  separate offense.
  503         Section 9. Section 1002.3282, Florida Statutes, is created
  504  to read:
  505         1002.3282 Transfer prohibited.—The holder of a statement of
  506  need may not transfer a statement of need to another individual
  507  unless that individual meets the requirements of s.
  508  1002.327(2)(a). A holder that violates this section commits a
  509  misdemeanor of the first degree, punishable as provided in s.
  510  775.082, by a fine of up to $10,000, or both.
  511         Section 10. Section 1002.329, Florida Statutes, is created
  512  to read:
  513         1002.329 Injunction.—Notwithstanding the existence or
  514  pursuit of any other remedy, the department may maintain an
  515  action in the name of the state for injunction or other process
  516  against any person to restrain or prevent the pursuit of a
  517  project subject to review in absence of a valid statement of
  518  need.
  519         Section 11. Subsection (1), paragraph (a) of subsection
  520  (6), and paragraph (a) of subsection (8) of section 1002.33,
  521  Florida Statutes, are amended, and paragraph (e) is added to
  522  subsection (7) of that section, to read:
  523         1002.33 Charter schools.—
  524         (1) AUTHORIZATION.—Charter schools shall be part of the
  525  state’s program of public education. All charter schools in
  526  Florida are public schools. A charter school may be formed by
  527  creating a new school or converting an existing public school to
  528  charter status. A charter school may operate a virtual charter
  529  school pursuant to s. 1002.45(1)(d) to provide full-time online
  530  instruction to eligible students, pursuant to s. 1002.455, in
  531  kindergarten through grade 12. A charter school must amend its
  532  charter or submit a new application pursuant to subsection (6)
  533  to become a virtual charter school. A virtual charter school is
  534  subject to the requirements of this section; however, a virtual
  535  charter school is exempt from subsections (18) and (19),
  536  subparagraphs (20)(a)2., 4., 5., and 7., paragraph (20)(c), and
  537  s. 1003.03. A public school may not use the term charter in its
  538  name unless it has been approved under this section. Effective
  539  July 1, 2017, a district school board may not issue a charter to
  540  a charter school that has not been issued a statement of need
  541  pursuant to s. 1002.326.
  542         (6) APPLICATION PROCESS AND REVIEW.—Charter school
  543  applications are subject to the following requirements:
  544         (a) A person or entity wishing to open a charter school
  545  shall prepare and submit an application on a model application
  546  form prepared by the Department of Education which:
  547         1. Demonstrates how the school will use the guiding
  548  principles and meet the statutorily defined purpose of a charter
  549  school.
  550         2. Provides a detailed curriculum plan that illustrates how
  551  students will be provided services to attain the Sunshine State
  552  Standards.
  553         3. Contains goals and objectives for improving student
  554  learning and measuring that improvement. These goals and
  555  objectives must indicate how much academic improvement students
  556  are expected to show each year, how success will be evaluated,
  557  and the specific results to be attained through instruction.
  558         4. Describes the reading curriculum and differentiated
  559  strategies that will be used for students reading at grade level
  560  or higher and a separate curriculum and strategies for students
  561  who are reading below grade level. A sponsor shall deny a
  562  charter if the school does not propose a reading curriculum that
  563  is consistent with effective teaching strategies that are
  564  grounded in scientifically based reading research.
  565         5. Contains an annual financial plan for each year
  566  requested by the charter for operation of the school for up to 5
  567  years. This plan must contain anticipated fund balances based on
  568  revenue projections, a spending plan based on projected revenues
  569  and expenses, and a description of controls that will safeguard
  570  finances and projected enrollment trends.
  571         6. Contains additional information a sponsor may require,
  572  which shall be attached as an addendum to the charter school
  573  application described in this paragraph.
  574         7. For the establishment of a virtual charter school,
  575  documents that the applicant has contracted with a provider of
  576  virtual instruction services pursuant to s. 1002.45(1)(d).
  577         8. Documents that the applicant has been issued a statement
  578  of need by the Department of Education. Issuance of a statement
  579  of need does not guarantee approval of the charter school
  580  application.
  581         (7) CHARTER.—The major issues involving the operation of a
  582  charter school shall be considered in advance and written into
  583  the charter. The charter shall be signed by the governing board
  584  of the charter school and the sponsor, following a public
  585  hearing to ensure community input.
  586         (e) The charter must identify the issuance of a statement
  587  of need by the Department of Education.
  588         (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.—
  589         (a) The sponsor shall make student academic achievement for
  590  all students the most important factor when determining whether
  591  to renew or terminate the charter. The sponsor may also choose
  592  not to renew or may terminate the charter for any of the
  593  following grounds:
  594         1. Failure to participate in the state’s education
  595  accountability system created in s. 1008.31, as required in this
  596  section, or failure to meet the requirements for student
  597  performance stated in the charter.
  598         2. Failure to meet generally accepted standards of fiscal
  599  management.
  600         3. Violation of law.
  601         4. Failure to maintain a valid statement of need.
  602         5. Other good cause shown.
  603         Section 12. This act shall take effect October 1, 2016.