HB 1323

CS

CHAMBER ACTION

1	The Choice & Innovation Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to charter schools; amending s. 1002.33,
7	F.S.; revising charter school purposes; revising the
8	charter school application process including review,
9	approval or denial, and appeal; modifying duties of
10	sponsors; limiting liability of sponsors; requiring an
11	annual survey of charter school governing boards;
12	requiring the Department of Education to provide technical
13	assistance to charter school applicants; revising
14	provisions relating to a charter agreement, term, and
15	renewal; providing procedures when a state of financial
16	emergency exists; revising causes for nonrenewal or
17	termination of a charter; requiring the department to
18	maintain a database of charter school applicants and
19	contract operators; revising provisions relating to
20	payment and reimbursement to a charter school by a school
21	district; authorizing the State Board of Education to
22	impose a fine on or withhold lottery funds from a school
23	district for certain violations; requiring conversion
24	charter schools to comply with certain facility
25	requirements under specific situations; authorizing
26	certain zoning and land use designations for certain
27	charter school facilities; revising exemption from
28	assessment of fees; providing for additional services to
29	charter schools and revising administrative fee
30	requirements; requiring the department to develop a
31	standard format for applications, charters, and charter
32	renewals; deleting a provision requiring a review of
33	charter schools in 2005 by the Legislature; amending s.
34	218.39, F.S.; requiring that a charter school be notified
35	of certain deteriorating financial conditions; amending s.
36	218.50, F.S.; modifying a short title; amending s.
37	218.501, F.S.; including charter schools in the statement
38	of purpose relating to financial management; amending s.
39	218.503, F.S.; providing for charter schools to be subject
40	to provisions governing financial emergencies; providing
41	procedures; amending s. 218.504, F.S.; providing for
42	cessation of state action related to a state of financial
43	emergency; amending s. 11.45, F.S.; conforming provisions;
44	amending s. 166.271, F.S.; correcting cross references;
45	amending s. 1002.32, F.S.; providing that a charter lab
46	school that elects to provide student transportation is
47	eligible for funding for that purpose; amending s.
48	1003.05, F.S.; modifying the list of special academic
49	programs for transitioning students from military
50	families; amending s. 1012.74, F.S.; providing that
51	educator professional liability insurance shall cover
52	charter school personnel; amending s. 1013.62, F.S.;
53	revising provisions relating to eligibility for and
54	allocation of charter school capital outlay funding;
55	revising purposes for which capital outlay funds may be
56	used; providing effective dates.
57
58	Be It Enacted by the Legislature of the State of Florida:
59
60	Section 1.  Section 1002.33, Florida Statutes, is amended
61	to read:
62	1002.33  Charter schools.--
63	(1)  AUTHORIZATION.--Charter schools shall be part of the
64	state's program of public education. All charter schools in
65	Florida are public schools. A charter school may be formed by
66	creating a new school or converting an existing public school to
67	charter status. A public school may not use the term charter in
68	its name unless it has been approved under this section.
69	(2)  GUIDING PRINCIPLES; PURPOSE.--
70	(a)  Charter schools in Florida shall be guided by the
71	following principles:
72	1.  Meet high standards of student achievement while
73	providing parents flexibility to choose among diverse
74	educational opportunities within the state's public school
75	system.
76	2.  Promote enhanced academic success and financial
77	efficiency by aligning responsibility with accountability.
78	3.  Provide parents with sufficient information on whether
79	their child is reading at grade level and whether the child
80	gains at least a year's worth of learning for every year spent
81	in the charter school.
82	(b)  Charter schools shall fulfill one of the following
83	purposes:
84	1.  Improve student learning and academic achievement.
85	2.  Increase learning opportunities for all students, with
86	special emphasis on low-performing students and reading.
87	3.  Create new professional opportunities for teachers,
88	including ownership of the learning program at the school site.
89	4.  Encourage the use of innovative learning methods.
90	5.  Require the measurement of learning outcomes.
91	(c)  Charter schools may fulfill the following purposes:
92	1.  Create innovative measurement tools.
93	2.  Provide rigorous competition within the public school
94	district to stimulate continual improvement in all public
95	schools.
96	3.  Expand the capacity of the public school system.
97	4.  Mitigate the educational impact created by the
98	development of new residential dwelling units.
99	5.  Create new professional opportunities for teachers,
100	including ownership of the learning program at the school site.
101	6.  Encourage the use of innovative learning methods.
102	7.  Require the measurement of learning outcomes.
103	(3)  APPLICATION FOR CHARTER STATUS.--
104	(a)  An application for a new charter school may be made by
105	an individual, teachers, parents, a group of individuals, a
106	municipality, or a legal entity organized under the laws of this
107	state.
108	(b)  An application for a conversion charter school shall
109	be made by the district school board, the principal, teachers,
110	parents, and/or the school advisory council at an existing
111	public school that has been in operation for at least 2 years
112	prior to the application to convert., including A public school-
113	within-a-school that is designated as a school by the district
114	school board may also submit an application to convert to
115	charter status. An application submitted proposing to convert an
116	existing public school to a charter school shall demonstrate the
117	support of at least 50 percent of the teachers employed at the
118	school and 50 percent of the parents voting whose children are
119	enrolled at the school, provided that a majority of the parents
120	eligible to vote participate in the ballot process, according to
121	rules adopted by the State Board of Education. A district school
122	board denying an application for a conversion charter school
123	shall provide notice of denial to the applicants in writing
124	within 10 30 days after the meeting at which the district school
125	board denied the application. The notice must identify specify
126	the specific exact reasons for denial and must provide
127	documentation supporting those reasons. A private school,
128	parochial school, or home education program shall not be
129	eligible for charter school status.
130	(4)  UNLAWFUL REPRISAL.--
131	(a)  No district school board, or district school board
132	employee who has control over personnel actions, shall take
133	unlawful reprisal against another district school board employee
134	because that employee is either directly or indirectly involved
135	with an application to establish a charter school. As used in
136	this subsection, the term "unlawful reprisal" means an action
137	taken by a district school board or a school system employee
138	against an employee who is directly or indirectly involved in a
139	lawful application to establish a charter school, which occurs
140	as a direct result of that involvement, and which results in one
141	or more of the following: disciplinary or corrective action;
142	adverse transfer or reassignment, whether temporary or
143	permanent; suspension, demotion, or dismissal; an unfavorable
144	performance evaluation; a reduction in pay, benefits, or
145	rewards; elimination of the employee's position absent of a
146	reduction in workforce as a result of lack of moneys or work; or
147	other adverse significant changes in duties or responsibilities
148	that are inconsistent with the employee's salary or employment
149	classification. The following procedures shall apply to an
150	alleged unlawful reprisal that occurs as a consequence of an
151	employee's direct or indirect involvement with an application to
152	establish a charter school:
153	1.  Within 60 days after the date upon which a reprisal
154	prohibited by this subsection is alleged to have occurred, an
155	employee may file a complaint with the Department of Education.
156	2.  Within 3 working days after receiving a complaint under
157	this section, the Department of Education shall acknowledge
158	receipt of the complaint and provide copies of the complaint and
159	any other relevant preliminary information available to each of
160	the other parties named in the complaint, which parties shall
161	each acknowledge receipt of such copies to the complainant.
162	3.  If the Department of Education determines that the
163	complaint demonstrates reasonable cause to suspect that an
164	unlawful reprisal has occurred, the Department of Education
165	shall conduct an investigation to produce a fact-finding report.
166	4.  Within 90 days after receiving the complaint, the
167	Department of Education shall provide the district school
168	superintendent of the complainant's district and the complainant
169	with a fact-finding report that may include recommendations to
170	the parties or a proposed resolution of the complaint. The fact-
171	finding report shall be presumed admissible in any subsequent or
172	related administrative or judicial review.
173	5.  If the Department of Education determines that
174	reasonable grounds exist to believe that an unlawful reprisal
175	has occurred, is occurring, or is to be taken, and is unable to
176	conciliate a complaint within 60 days after receipt of the fact-
177	finding report, the Department of Education shall terminate the
178	investigation. Upon termination of any investigation, the
179	Department of Education shall notify the complainant and the
180	district school superintendent of the termination of the
181	investigation, providing a summary of relevant facts found
182	during the investigation and the reasons for terminating the
183	investigation. A written statement under this paragraph is
184	presumed admissible as evidence in any judicial or
185	administrative proceeding.
186	6.  The Department of Education shall either contract with
187	the Division of Administrative Hearings under s. 120.65, or
188	otherwise provide for a complaint for which the Department of
189	Education determines reasonable grounds exist to believe that an
190	unlawful reprisal has occurred, is occurring, or is to be taken,
191	and is unable to conciliate, to be heard by a panel of impartial
192	persons. Upon hearing the complaint, the panel shall make
193	findings of fact and conclusions of law for a final decision by
194	the Department of Education.
195
196	It shall be an affirmative defense to any action brought
197	pursuant to this section that the adverse action was predicated
198	upon grounds other than, and would have been taken absent, the
199	employee's exercise of rights protected by this section.
200	(b)  In any action brought under this section for which it
201	is determined reasonable grounds exist to believe that an
202	unlawful reprisal has occurred, is occurring, or is to be taken,
203	the relief shall include the following:
204	1.  Reinstatement of the employee to the same position held
205	before the unlawful reprisal was commenced, or to an equivalent
206	position, or payment of reasonable front pay as alternative
207	relief.
208	2.  Reinstatement of the employee's full fringe benefits
209	and seniority rights, as appropriate.
210	3.  Compensation, if appropriate, for lost wages, benefits,
211	or other lost remuneration caused by the unlawful reprisal.
212	4.  Payment of reasonable costs, including attorney's fees,
213	to a substantially prevailing employee, or to the prevailing
214	employer if the employee filed a frivolous action in bad faith.
215	5.  Issuance of an injunction, if appropriate, by a court
216	of competent jurisdiction.
217	6.  Temporary reinstatement to the employee's former
218	position or to an equivalent position, pending the final outcome
219	of the complaint, if it is determined that the action was not
220	made in bad faith or for a wrongful purpose, and did not occur
221	after a district school board's initiation of a personnel action
222	against the employee that includes documentation of the
223	employee's violation of a disciplinary standard or performance
224	deficiency.
225	(5)  SPONSOR; DUTIES; LIABILITY; SURVEY.--
226	(a)  Sponsoring entities.--
227	1.  A district school board may sponsor a charter school in
228	the county over which the district school board has
229	jurisdiction.
230	2.  A state university may grant a charter to a lab school
231	created under s. 1002.32 and shall be considered to be the
232	school's sponsor. Such school shall be considered a charter lab
233	school.
234	(b)  Sponsor duties.--
235	1.  The sponsor shall monitor and review the charter school
236	in its progress toward the goals established in the charter.
237	2.  The sponsor shall monitor the revenues and expenditures
238	of the charter school.
239	3.  The sponsor may approve a charter for a charter school
240	before the applicant has secured space, equipment, or personnel,
241	if the applicant indicates approval is necessary for it to raise
242	working funds capital.
243	4.  The sponsor's policies shall not apply to a charter
244	school.
245	5.  The sponsor shall ensure that the charter is innovative
246	and consistent with the state education goals established by s.
247	1000.03(5).
248	6.  The sponsor shall ensure that the charter school
249	participates in the state's education accountability system. If
250	a charter school falls short of performance measures included in
251	the approved charter, the sponsor shall report such shortcomings
252	to the Department of Education.
253	7.  The sponsor shall provide assistance in scheduling fire
254	code inspections upon the request of the charter school.
255	8.  The director and a representative of the governing
256	board of a charter school graded "D" or "F" shall appear before
257	the sponsor at a formal district school board meeting or state
258	university board of trustees meeting at least once a year to
259	present information concerning each contract component having
260	noted deficiencies and to address corrective strategies that are
261	being implemented by the school. The sponsor shall communicate
262	at the meeting, and in writing to the director, the services
263	provided to the school to help the school address its
264	deficiencies.
265
266	A community college may work with the school district or school
267	districts in its designated service area to develop charter
268	schools that offer secondary education. These charter schools
269	must include an option for students to receive an associate
270	degree upon high school graduation. District school boards shall
271	cooperate with and assist the community college on the charter
272	application. Community college applications for charter schools
273	are not subject to the time deadlines outlined in subsection (6)
274	and may be approved by the district school board at any time
275	during the year. Community colleges shall not report FTE for any
276	students who receive FTE funding through the Florida Education
277	Finance Program.
278	(c)  Sponsor liability.--A district school board sponsoring
279	a charter school shall not be liable for damages resulting from
280	the acts or omissions of the charter school's governing board,
281	agents, or employees unless such act or omission was based upon
282	requirements or policies of the district school board.
283	(d)  Annual survey.--The department shall conduct an annual
284	survey of charter school governing boards to determine the
285	boards' satisfaction with the services received from their
286	sponsors and the Department of Education. The survey results
287	shall be reported to the State Board of Education which may
288	recommend action for sponsors having an inordinate number of
289	complaints or sponsors that have been determined not to have
290	fulfilled their responsibilities as described in this section.
291	(6)  APPLICATION PROCESS AND REVIEW.--Charter school
292	Beginning September 1, 2003, applications are subject to the
293	following requirements:
294	(a)  A person or entity wishing to open a charter school
295	shall prepare an application that:
296	1.  Demonstrates how the school will use the guiding
297	principles and meet the statutorily defined purpose of a charter
298	school.
299	2.  Provides a detailed curriculum plan that illustrates
300	how students will be provided services to attain the Sunshine
301	State Standards.
302	3.  Contains goals and objectives for improving student
303	learning and measuring that improvement. These goals and
304	objectives must indicate how much academic improvement students
305	are expected to show each year, how success will be evaluated,
306	and the specific results to be attained through instruction.
307	4.  Describes the reading curriculum and differentiated
308	strategies that will be used for students reading at grade level
309	or higher and a separate curriculum and strategies for students
310	who are reading below grade level. A sponsor shall deny a
311	charter if the school does not propose a reading curriculum that
312	is consistent with effective teaching strategies that are
313	grounded in scientifically based reading research.
314	5.  Contains an annual financial plan for each year
315	requested by the charter for operation of the school for up to 5
316	years. This plan must contain anticipated fund balances based on
317	revenue projections, a spending plan based on projected revenues
318	and expenses, and a description of controls that will safeguard
319	finances and projected enrollment trends.
320	(b)  A district school board shall receive and review all
321	applications for a charter school. Beginning with the 2005-2006
322	school year, a district school board shall receive and consider
323	charter school applications received on or before August
324	September 1 of each calendar year for charter schools to be
325	opened at the beginning of the school district's next school
326	year, or to be opened at a time agreed to by the applicant and
327	the district school board. A district school board may receive
328	applications later than this date if it chooses. A sponsor may
329	not charge an applicant for a charter any fee for the processing
330	or consideration of an application, and a sponsor may not base
331	its consideration or approval of an application upon the promise
332	of future payment of any kind.
333	1.  In order to facilitate an accurate budget projection
334	process, a district school board shall be held harmless for FTE
335	students who are not included in the FTE projection due to
336	approval of charter school applications after the FTE projection
337	deadline. In a further effort to facilitate an accurate budget
338	projection, within 15 calendar days after receipt of a charter
339	school application, a district school board or other sponsor
340	shall report to the Department of Education the name of the
341	applicant entity, the proposed charter school location, and its
342	projected FTE.
343	2.  In order to ensure fiscal responsibility, an
344	application for a charter school shall include a full accounting
345	of expected assets, a projection of expected sources and amounts
346	of income, including income derived from projected student
347	enrollments and from community support, and an expense
348	projection that includes full accounting of the costs of
349	operation, including start-up costs.
350	3.  A district school board shall by a majority vote
351	approve or deny an application no later than 60 calendar days
352	after the application is received, unless the district school
353	board and the applicant mutually agree in writing to temporarily
354	postpone the vote to a specific date, at which time the district
355	school board shall by a majority vote approve or deny the
356	application. If the district school board fails to act on the
357	application, an applicant may appeal to the State Board of
358	Education as provided in paragraph (c). If an application is
359	denied, the district school board shall, within 10 calendar
360	days, articulate in writing the specific reasons for based upon
361	good cause supporting its denial of the charter application and
362	must provide documentation to the applicant and to the
363	Department of Education supporting those reasons.
364	4.  For budget projection purposes, the district school
365	board or other sponsor shall report to the Department of
366	Education the approval or denial of a charter application within
367	10 calendar days after such approval or denial. In the event of
368	approval, the report to the Department of Education shall
369	include the final projected FTE for the approved charter school.
370	5.  Upon approval of a charter application, the initial
371	startup shall commence with the beginning of the public school
372	calendar for the district in which the charter is granted unless
373	the district school board allows a waiver of this provision for
374	good cause.
375	(c)  An applicant may appeal any denial of that applicant's
376	application or failure to act on an application to the State
377	Board of Education no later than 30 calendar days after receipt
378	of the district school board's decision or failure to act and
379	shall notify the district school board of its appeal. Any
380	response of the district school board shall be submitted to the
381	State Board of Education within 30 calendar days after
382	notification of the appeal. Upon receipt of notification from
383	the State Board of Education that a charter school applicant is
384	filing an appeal, the Commissioner of Education shall convene a
385	meeting of the Charter School Appeal Commission to study and
386	make recommendations to the State Board of Education regarding
387	its pending decision about the appeal. The commission shall
388	forward its recommendation to the state board no later than 7
389	calendar days prior to the date on which the appeal is to be
390	heard. The State Board of Education shall by majority vote
391	accept or reject the decision of the district school board no
392	later than 90 calendar days after an appeal is filed in
393	accordance with State Board of Education rule. The Charter
394	School Appeal Commission may reject an appeal submission for
395	failure to comply with procedural rules governing the appeals
396	process. The rejection shall describe the submission errors. The
397	appellant may have up to 15 calendar days from notice of
398	rejection to resubmit an appeal that meets requirements of State
399	Board of Education rule. An application for appeal submitted
400	subsequent to such rejection shall be considered timely if the
401	original appeal was filed within 30 calendar days after receipt
402	of notice of the specific reasons for the district school
403	board's denial of the charter application. The State Board of
404	Education shall remand the application to the district school
405	board with its written decision that the district school board
406	approve or deny the application. The district school board shall
407	implement the decision of the State Board of Education. The
408	decision of the State Board of Education is not subject to the
409	provisions of the Administrative Procedure Act, chapter 120.
410	(d)  The district school board shall act upon the decision
411	of the State Board of Education within 30 calendar days after it
412	is received. The State Board of Education's decision is a final
413	action subject to judicial review.
414	(e)1.  A Charter School Appeal Commission is established to
415	assist the commissioner and the State Board of Education with a
416	fair and impartial review of appeals by applicants whose charter
417	applications have been denied, whose charter contracts have not
418	been renewed, or whose charter contracts have been terminated by
419	their sponsors, or whose disputes over contract negotiations
420	have not been resolved through mediation.
421	2.  The Charter School Appeal Commission may receive copies
422	of the appeal documents forwarded to the State Board of
423	Education, review the documents, gather other applicable
424	information regarding the appeal, and make a written
425	recommendation to the commissioner. The recommendation must
426	state whether the appeal should be upheld or denied and include
427	the reasons for the recommendation being offered. The
428	commissioner shall forward the recommendation to the State Board
429	of Education no later than 7 calendar days prior to the date on
430	which the appeal is to be heard. The state board must consider
431	the commission's recommendation in making its decision, but is
432	not bound by the recommendation. The decision of the Charter
433	School Appeal Commission is not subject to the provisions of the
434	Administrative Procedure Act, chapter 120.
435	3.  The commissioner shall appoint the members of the
436	Charter School Appeal Commission. Members shall serve without
437	compensation but may be reimbursed for travel and per diem
438	expenses in conjunction with their service. One-half of the
439	members must represent currently operating charter schools, and
440	one-half of the members must represent school districts. The
441	commissioner or a named designee shall chair the Charter School
442	Appeal Commission.
443	4.  The chair shall convene meetings of the commission and
444	shall ensure that the written recommendations are completed and
445	forwarded in a timely manner. In cases where the commission
446	cannot reach a decision, the chair shall make the written
447	recommendation with justification, noting that the decision was
448	rendered by the chair.
449	5.  Commission members shall thoroughly review the
450	materials presented to them from the appellant and the sponsor.
451	The commission may request information to clarify the
452	documentation presented to it. In the course of its review, the
453	commission may facilitate the postponement of an appeal in those
454	cases where additional time and communication may negate the
455	need for a formal appeal and both parties agree, in writing, to
456	postpone the appeal to the State Board of Education. A new date
457	certain for the appeal shall then be set based upon the rules
458	and procedures of the State Board of Education. Commission
459	members shall provide a written recommendation to the state
460	board as to whether the appeal should be upheld or denied. A
461	fact-based justification for the recommendation must be
462	included. The chair must ensure that the written recommendation
463	is submitted to the State Board of Education members no later
464	than 7 calendar days prior to the date on which the appeal is to
465	be heard. Both parties in the case shall also be provided a copy
466	of the recommendation.
467	(f)  The Department of Education must offer or arrange for
468	training and technical assistance to charter school applicants
469	in developing business plans and estimating costs and income.
470	This assistance must address estimating startup costs,
471	projecting enrollment, and identifying the types and amounts of
472	state and federal financial assistance the charter school will
473	be eligible to receive. The department of Education may provide
474	other technical assistance to an applicant upon written request.
475	(g)  In considering charter applications for a lab school,
476	a state university shall consult with the district school board
477	of the county in which the lab school is located. The decision
478	of a state university may be appealed pursuant to the procedure
479	established in this subsection.
480	(h)  The terms and conditions for the operation of a
481	charter school shall be set forth by the sponsor and the
482	applicant in a written contractual agreement, called a charter.
483	The sponsor shall not impose unreasonable rules or regulations
484	that violate the intent of giving charter schools greater
485	flexibility to meet educational goals. The applicant and sponsor
486	shall have 3 6 months in which to mutually agree to the
487	provisions of the charter. The proposed charter must be provided
488	to the charter school at least 7 calendar days prior to the date
489	on which the charter is scheduled to be heard by the sponsor.
490	The Department of Education shall provide mediation services for
491	any dispute regarding this section subsequent to the approval of
492	a charter application and for any dispute relating to the
493	approved charter, except disputes regarding charter school
494	application denials. If the Commissioner of Education determines
495	that the dispute cannot be settled through mediation, the
496	dispute may be appealed to an administrative law judge appointed
497	by the Division of Administrative Hearings. The administrative
498	law judge may rule on issues of equitable treatment of the
499	charter school as a public school, whether proposed provisions
500	of the charter violate the intended flexibility granted charter
501	schools by statute, or on any other matter regarding this
502	section except a charter school application denial, a charter
503	termination, or a charter nonrenewal and shall award the
504	prevailing party reasonable attorney's fees and costs incurred
505	to be paid by the losing party. The costs of the administrative
506	hearing shall be paid by the party whom the administrative law
507	judge rules against.
508	(7)  CHARTER.--The major issues involving the operation of
509	a charter school shall be considered in advance and written into
510	the charter. The charter shall be signed by the governing body
511	of the charter school and the sponsor, following a public
512	hearing to ensure community input.
513	(a)  The charter shall address, and criteria for approval
514	of the charter shall be based on:
515	1.  The school's mission, the students to be served, and
516	the ages and grades to be included.
517	2.  The focus of the curriculum, the instructional methods
518	to be used, any distinctive instructional techniques to be
519	employed, and identification and acquisition of appropriate
520	technologies needed to improve educational and administrative
521	performance which include a means for promoting safe, ethical,
522	and appropriate uses of technology which comply with legal and
523	professional standards. The charter shall ensure that reading is
524	a primary focus of the curriculum and that resources are
525	provided to identify and provide specialized instruction for
526	students who are reading below grade level. The curriculum and
527	instructional strategies for reading must be consistent with the
528	Sunshine State Standards and grounded in scientifically based
529	reading research.
530	3.  The current incoming baseline standard of student
531	academic achievement, the outcomes to be achieved, and the
532	method of measurement that will be used. The criteria listed in
533	this subparagraph shall include a detailed description for each
534	of the following:
535	a.  How the baseline student academic achievement levels
536	and prior rates of academic progress will be established.
537	b.  How these baseline rates will be compared to rates of
538	academic progress achieved by these same students while
539	attending the charter school.
540	c.  To the extent possible, how these rates of progress
541	will be evaluated and compared with rates of progress of other
542	closely comparable student populations.
543
544	The district school board is required to provide academic
545	student performance data to charter schools for each of their
546	students coming from the district school system, as well as
547	rates of academic progress of comparable student populations in
548	the district school system.
549	4.  The methods used to identify the educational strengths
550	and needs of students and how well educational goals and
551	performance standards are met by students attending the charter
552	school. Included in the methods is a means for the charter
553	school to ensure accountability to its constituents by analyzing
554	student performance data and by evaluating the effectiveness and
555	efficiency of its major educational programs. Students in
556	charter schools shall, at a minimum, participate in the
557	statewide assessment program created under s. 1008.22.
558	5.  In secondary charter schools, a method for determining
559	that a student has satisfied the requirements for graduation in
560	s. 1003.43.
561	6.  A method for resolving conflicts between the governing
562	body of the charter school and the sponsor.
563	7.  The admissions procedures and dismissal procedures,
564	including the school's code of student conduct.
565	8.  The ways by which the school will achieve a
566	racial/ethnic balance reflective of the community it serves or
567	within the racial/ethnic range of other public schools in the
568	same school district.
569	9.  The financial and administrative management of the
570	school, including a reasonable demonstration of the professional
571	experience or competence of those individuals or organizations
572	applying to operate the charter school or those hired or
573	retained to perform such professional services and the
574	description of clearly delineated responsibilities and the
575	policies and practices needed to effectively manage the charter
576	school. A description of internal audit procedures and
577	establishment of controls to ensure that financial resources are
578	properly managed must be included. Both public sector and
579	private sector professional experience shall be equally valid in
580	such a consideration.
581	10.  The asset and liability projections required in the
582	application which are incorporated into the charter and which
583	shall be compared with information provided in the annual report
584	of the charter school. The charter shall ensure that, if a
585	charter school internal audit or annual financial audit reveals
586	a state of financial emergency as defined in s. 218.503 or
587	deficit financial position, the auditors are required to notify
588	the charter school governing board, the sponsor, and the
589	Department of Education. The internal auditor shall report such
590	findings in the form of an exit interview to the principal or
591	the principal administrator of the charter school and the chair
592	of the governing board within 7 working days after finding the
593	state of financial emergency or deficit position. A final report
594	shall be provided to the entire governing board, the sponsor,
595	and the Department of Education within 14 working days after the
596	exit interview. When a charter school is in a state of financial
597	emergency, the charter school shall file a detailed financial
598	recovery plan with the sponsor. The department shall establish
599	guidelines, with involvement from both school districts and
600	charter schools, for developing such plans.
601	11.  A description of procedures that identify various
602	risks and provide for a comprehensive approach to reduce the
603	impact of losses; plans to ensure the safety and security of
604	students and staff; plans to identify, minimize, and protect
605	others from violent or disruptive student behavior; and the
606	manner in which the school will be insured, including whether or
607	not the school will be required to have liability insurance,
608	and, if so, the terms and conditions thereof and the amounts of
609	coverage.
610	12.  The term of the charter which shall provide for
611	cancellation of the charter if insufficient progress has been
612	made in attaining the student achievement objectives of the
613	charter and if it is not likely that such objectives can be
614	achieved before expiration of the charter. The initial term of a
615	charter shall be for 3, 4, or 5 years. In order to facilitate
616	access to long-term financial resources for charter school
617	construction, charter schools that are operated by a
618	municipality or other public entity as provided by law are
619	eligible for up to a 15-year charter, subject to approval by the
620	district school board. A charter lab school is eligible for a
621	charter for a term of up to 15 years. In addition, to facilitate
622	access to long-term financial resources for charter school
623	construction, charter schools that are operated by a private,
624	not-for-profit, s. 501(c)(3) status corporation are eligible for
625	up to a 15-year 10-year charter, subject to approval by the
626	district school board. Such long-term charters remain subject to
627	annual review and may be terminated during the term of the
628	charter, but only for specific good cause according to the
629	provisions set forth in subsection (8).
630	13.  The facilities to be used and their location.
631	14.  The qualifications to be required of the teachers and
632	the potential strategies used to recruit, hire, train, and
633	retain qualified staff to achieve best value.
634	15.  The governance structure of the school, including the
635	status of the charter school as a public or private employer as
636	required in paragraph (12)(i).
637	16.  A timetable for implementing the charter which
638	addresses the implementation of each element thereof and the
639	date by which the charter shall be awarded in order to meet this
640	timetable.
641	17.  In the case of an existing public school being
642	converted to charter status, alternative arrangements for
643	current students who choose not to attend the charter school and
644	for current teachers who choose not to teach in the charter
645	school after conversion in accordance with the existing
646	collective bargaining agreement or district school board rule in
647	the absence of a collective bargaining agreement. However,
648	alternative arrangements shall not be required for current
649	teachers who choose not to teach in a charter lab school, except
650	as authorized by the employment policies of the state university
651	which grants the charter to the lab school.
652	(b)1.  A charter may be renewed every 5 school years,
653	provided that a program review demonstrates that the criteria in
654	paragraph (a) have been successfully accomplished and that none
655	of the grounds for nonrenewal established by paragraph (8)(a)
656	has been documented. In order to facilitate long-term financing
657	for charter school construction, charter schools operating for a
658	minimum of 2 years and demonstrating exemplary academic
659	programming and fiscal management are eligible for a 15-year
660	charter renewal. Such long-term charter is subject to annual
661	review and may be terminated during the term of the charter.
662	2.  The 15-year charter renewal that may be granted
663	pursuant to subparagraph 1. shall be granted to a charter school
664	that has received a school grade of "A" or "B" pursuant to s.
665	1008.34 in 3 of the past 4 years and is not in a state of
666	financial emergency or deficit position as defined by this
667	section. Such long-term charter is subject to annual review and
668	may be terminated during the term of the charter pursuant to
669	subsection (8).
670	(c)  A charter may be modified during its initial term or
671	any renewal term upon the recommendation of the sponsor or the
672	charter school governing board and the approval of both parties
673	to the agreement.
674	(8)  CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.--
675	(a)  At the end of the term of a charter, the sponsor may
676	choose not to renew the charter for any of the following
677	grounds:
678	1.  Failure to participate in the state's education
679	accountability system created in s. 1008.31, as required in this
680	section, or failure to meet the requirements for student
681	performance stated in the charter.
682	2.  Failure to meet generally accepted standards of fiscal
683	management.
684	3.  Violation of law.
685	4.  Determination by the sponsor that the health, safety,
686	or welfare of the students is threatened Other good cause shown.
687	5.  Failure of the director of a charter school having a
688	school performance grade of a "D" or "F" to appear before the
689	sponsoring body as required in subsection (5).
690	(b)  During the term of a charter, the sponsor may
691	terminate the charter for any of the grounds listed in paragraph
692	(a).
693	(c)  At least 90 days prior to renewing or terminating a
694	charter, the sponsor shall notify the governing body of the
695	school of the proposed action in writing. The notice shall state
696	in reasonable detail the grounds for the proposed action and
697	stipulate that the school's governing body may, within 14
698	calendar days after receiving the notice, request an informal
699	hearing before the sponsor. The sponsor shall conduct the
700	informal hearing within 30 calendar days after receiving a
701	written request. The charter school's governing body may, within
702	14 calendar days after receiving the sponsor's decision to
703	terminate or refuse to renew the charter, appeal the decision
704	pursuant to the procedure established in subsection (6).
705	(d)  A charter may be terminated immediately if the sponsor
706	determines that good cause has been shown or if the health,
707	safety, or welfare of the students is threatened. The charter
708	sponsor must notify in writing the charter school's governing
709	board, the charter school principal, and the department if a
710	charter is immediately terminated. The sponsor shall clearly
711	identify the specific issues that resulted in the immediate
712	termination and provide evidence of prior notification of issues
713	resulting in the immediate termination when appropriate. The
714	school district in which the charter school is located shall
715	assume operation of the school under these circumstances. The
716	charter school's governing board may, within 14 days after
717	receiving the sponsor's decision to terminate the charter,
718	appeal the decision pursuant to the procedure established in
719	subsection (6).
720	(e)  When a charter is not renewed or is terminated, the
721	school shall be dissolved under the provisions of law under
722	which the school was organized, and any unencumbered public
723	funds, except for capital outlay funds, from the charter school
724	shall revert to the district school board. Capital outlay funds
725	provided pursuant to s. 1013.62 that are unencumbered shall
726	revert to the department to be redistributed among eligible
727	charter schools. In the event a charter school is dissolved or
728	is otherwise terminated, all district school board property and
729	improvements, furnishings, and equipment purchased with public
730	funds shall automatically revert to full ownership by the
731	district school board, subject to complete satisfaction of any
732	lawful liens or encumbrances. Any unencumbered public funds from
733	the charter school, district school board property and
734	improvements, furnishings, and equipment purchased with public
735	funds, or financial or other records pertaining to the charter
736	school, in the possession of any person, entity, or holding
737	company, other than the charter school, shall be held in trust
738	upon the district school board's request, until any appeal
739	status is resolved.
740	(f)  If a charter is not renewed or is terminated, the
741	charter school is responsible for all debts of the charter
742	school. The district may not assume the debt from any contract
743	for services made between the governing body of the school and a
744	third party, except for a debt that is previously detailed and
745	agreed upon in writing by both the district and the governing
746	body of the school and that may not reasonably be assumed to
747	have been satisfied by the district.
748	(g)  If a charter is not renewed or is terminated, a
749	student who attended the school may apply to, and shall be
750	enrolled in, another public school. Normal application deadlines
751	shall be disregarded under such circumstances.
752	(9)  CHARTER SCHOOL REQUIREMENTS.--
753	(a)  A charter school shall be nonsectarian in its
754	programs, admission policies, employment practices, and
755	operations.
756	(b)  A charter school shall admit students as provided in
757	subsection (10).
758	(c)  A charter school shall be accountable to its sponsor
759	for performance as provided in subsection (7).
760	(d)  A charter school shall not charge tuition or
761	registration fees, except those fees normally charged by other
762	public schools. However, a charter lab school may charge a
763	student activity and service fee as authorized by s. 1002.32(5).
764	(e)  A charter school shall meet all applicable state and
765	local health, safety, and civil rights requirements.
766	(f)  A charter school shall not violate the
767	antidiscrimination provisions of s. 1000.05.
768	(g)  A charter school shall provide for an annual financial
769	audit in accordance with s. 218.39. Financial audits that yield
770	a state of financial emergency as defined in s. 218.503 and are
771	conducted by a certified public accountant or auditor in
772	accordance with s. 218.39 shall be provided to the governing
773	board of the charter school within 7 working days after finding
774	that a state of financial emergency exists. When a charter
775	school is found to be in a state of financial emergency by a
776	certified public accountant or auditor, the charter school must
777	file a detailed financial recovery plan with the sponsor within
778	30 days after receipt of the audit.
779	(h)  No organization shall hold more than 15 charters
780	statewide.
781	(i)  Upon receipt of an application to operate a charter
782	school, the sponsor must notify the Department of Education of
783	the individual, group, organization, or private or nonprofit
784	company that submitted an application to operate a charter
785	school in this state or that is contracted with by the governing
786	board of a charter school to operate a charter school in this
787	state. The department shall maintain a database that contains
788	the name of each organization or entity applying for a charter
789	or operating by contract a charter school in this state,
790	principal contact information, a description of the organization
791	or entity, an identification of the number of charter
792	applications or contracts in the state, and disclosure of
793	charters terminated or renewed in this state and other states. A
794	sponsor may not approve an application for a charter unless the
795	governing board and contract operator of the school have
796	submitted a complete, accurate, and timely registration with the
797	department.
798	(j)(i)  In order to provide financial information that is
799	comparable to that reported for other public schools, charter
800	schools are to maintain all financial records which constitute
801	their accounting system:
802	1.  In accordance with the accounts and codes prescribed in
803	the most recent issuance of the publication titled "Financial
804	and Program Cost Accounting and Reporting for Florida Schools";
805	or
806	2.  At the discretion of the charter school governing
807	board, a charter school may elect to follow generally accepted
808	accounting standards for not-for-profit organizations, but must
809	reformat this information for reporting according to this
810	paragraph.
811
812	Charter schools are to provide annual financial report and
813	program cost report information in the state-required formats
814	for inclusion in district reporting in compliance with s.
815	1011.60(1). Charter schools that are operated by a municipality
816	or are a component unit of a parent nonprofit organization may
817	use the accounting system of the municipality or the parent but
818	must reformat this information for reporting according to this
819	paragraph.
820	(k)(j)  The governing board of the charter school shall
821	annually adopt and maintain an operating budget.
822	(l)(k)  The governing body of the charter school shall
823	exercise continuing oversight over charter school operations.
824	(m)(l)  The governing body of the charter school shall
825	report its progress annually to its sponsor, which shall forward
826	the report to the Commissioner of Education at the same time as
827	other annual school accountability reports. The Department of
828	Education shall include in its compilation a notation if a
829	school failed to file its report by the deadline established by
830	the department. The report shall include at least the following
831	components:
832	1.  Student achievement performance data, including the
833	information required for the annual school report and the
834	education accountability system governed by ss. 1008.31 and
835	1008.345. Charter schools are subject to the same accountability
836	requirements as other public schools, including reports of
837	student achievement information that links baseline student data
838	to the school's performance projections identified in the
839	charter. The charter school shall identify reasons for any
840	difference between projected and actual student performance.
841	2.  Financial status of the charter school which must
842	include revenues and expenditures at a level of detail that
843	allows for analysis of the ability to meet financial obligations
844	and timely repayment of debt.
845	3.  Documentation of the facilities in current use and any
846	planned facilities for use by the charter school for instruction
847	of students, administrative functions, or investment purposes.
848	4.  Descriptive information about the charter school's
849	personnel, including salary and benefit levels of charter school
850	employees, the proportion of instructional personnel who hold
851	professional or temporary certificates, and the proportion of
852	instructional personnel teaching in-field or out-of-field.
853	(n)(m)  A charter school shall not levy taxes or issue
854	bonds secured by tax revenues.
855	(o)(n)  A charter school shall provide instruction for at
856	least the number of days required by law for other public
857	schools, and may provide instruction for additional days.
858	(10)  ELIGIBLE STUDENTS.--
859	(a)  A charter school shall be open to any student covered
860	in an interdistrict agreement or residing in the school district
861	in which the charter school is located; however, in the case of
862	a charter lab school, the charter lab school shall be open to
863	any student eligible to attend the lab school as provided in s.
864	1002.32 or who resides in the school district in which the
865	charter lab school is located. Any eligible student shall be
866	allowed interdistrict transfer to attend a charter school when
867	based on good cause.
868	(b)  The charter school shall enroll an eligible student
869	who submits a timely application, unless the number of
870	applications exceeds the capacity of a program, class, grade
871	level, or building. In such case, all applicants shall have an
872	equal chance of being admitted through a random selection
873	process.
874	(c)  When a public school converts to charter status,
875	enrollment preference shall be given to students who would have
876	otherwise attended that public school.
877	(d)  A charter school may give enrollment preference to the
878	following student populations:
879	1.  Students who are siblings of a student enrolled in the
880	charter school.
881	2.  Students who are the children of a member of the
882	governing board of the charter school.
883	3.  Students who are the children of an employee of the
884	charter school.
885	(e)  A charter school may limit the enrollment process only
886	to target the following student populations:
887	1.  Students within specific age groups or grade levels.
888	2.  Students considered at risk of dropping out of school
889	or academic failure. Such students shall include exceptional
890	education students.
891	3.  Students enrolling in a charter school-in-the-workplace
892	or charter school-in-a-municipality established pursuant to
893	subsection (15).
894	4.  Students residing within a reasonable distance of the
895	charter school, as described in paragraph (20)(c). Such students
896	shall be subject to a random lottery and to the racial/ethnic
897	balance provisions described in subparagraph (7)(a)8. or any
898	federal provisions that require a school to achieve a
899	racial/ethnic balance reflective of the community it serves or
900	within the racial/ethnic range of other public schools in the
901	same school district.
902	5.  Students who meet reasonable academic, artistic, or
903	other eligibility standards established by the charter school
904	and included in the charter school application and charter or,
905	in the case of existing charter schools, standards that are
906	consistent with the school's mission and purpose. Such standards
907	shall be in accordance with current state law and practice in
908	public schools and may not discriminate against otherwise
909	qualified individuals.
910	6.  Students articulating from one charter school to
911	another pursuant to an articulation agreement between the
912	charter schools that has been approved by the sponsor.
913	(f)  Students with handicapping conditions and students
914	served in English for Speakers of Other Languages programs shall
915	have an equal opportunity of being selected for enrollment in a
916	charter school.
917	(g)  A student may withdraw from a charter school at any
918	time and enroll in another public school as determined by
919	district school board rule.
920	(h)  The capacity of the charter school shall be determined
921	annually by the governing board, in conjunction with the
922	sponsor, of the charter school in consideration of the factors
923	identified in this subsection.
924	(11)  PARTICIPATION IN INTERSCHOLASTIC EXTRACURRICULAR
925	ACTIVITIES.--A charter school student is eligible to participate
926	in an interscholastic extracurricular activity at the public
927	school to which the student would be otherwise assigned to
928	attend pursuant to s. 1006.15(3)(d).
929	(12)  EMPLOYEES OF CHARTER SCHOOLS.--
930	(a)  A charter school shall select its own employees. A
931	charter school may contract with its sponsor for the services of
932	personnel employed by the sponsor.
933	(b)  Charter school employees shall have the option to
934	bargain collectively. Employees may collectively bargain as a
935	separate unit or as part of the existing district collective
936	bargaining unit as determined by the structure of the charter
937	school.
938	(c)  The employees of a conversion charter school shall
939	remain public employees for all purposes, unless such employees
940	choose not to do so.
941	(d)  The teachers at a charter school may choose to be part
942	of a professional group that subcontracts with the charter
943	school to operate the instructional program under the auspices
944	of a partnership or cooperative that they collectively own.
945	Under this arrangement, the teachers would not be public
946	employees.
947	(e)  Employees of a school district may take leave to
948	accept employment in a charter school upon the approval of the
949	district school board. While employed by the charter school and
950	on leave that is approved by the district school board, the
951	employee may retain seniority accrued in that school district
952	and may continue to be covered by the benefit programs of that
953	school district, if the charter school and the district school
954	board agree to this arrangement and its financing. School
955	districts shall not require resignations of teachers desiring to
956	teach in a charter school. This paragraph shall not prohibit a
957	district school board from approving alternative leave
958	arrangements consistent with chapter 1012.
959	(f)  Teachers employed by or under contract to a charter
960	school shall be certified as required by chapter 1012. A charter
961	school governing board may employ or contract with skilled
962	selected noncertified personnel to provide instructional
963	services or to assist instructional staff members as education
964	paraprofessionals in the same manner as defined in chapter 1012,
965	and as provided by State Board of Education rule for charter
966	school governing boards. A charter school may not knowingly
967	employ an individual to provide instructional services or to
968	serve as an education paraprofessional if the individual's
969	certification or licensure as an educator is suspended or
970	revoked by this or any other state. A charter school may not
971	knowingly employ an individual who has resigned from a school
972	district in lieu of disciplinary action with respect to child
973	welfare or safety, or who has been dismissed for just cause by
974	any school district with respect to child welfare or safety. The
975	qualifications of teachers shall be disclosed to parents.
976	(g)  A charter school shall employ or contract with
977	employees who have undergone background screening as provided in
978	s. 1012.32. Members of the governing board of the charter school
979	shall also undergo background screening in a manner similar to
980	that provided in s. 1012.32.
981	(h)  For the purposes of tort liability, the governing body
982	and employees of a charter school shall be governed by s.
983	768.28.
984	(i)  A charter school shall organize as, or be operated by,
985	a nonprofit organization. A charter school may be operated by a
986	municipality or other public entity as provided for by law. As
987	such, the charter school may be either a private or a public
988	employer. As a public employer, a charter school may participate
989	in the Florida Retirement System upon application and approval
990	as a "covered group" under s. 121.021(34). If a charter school
991	participates in the Florida Retirement System, the charter
992	school employees shall be compulsory members of the Florida
993	Retirement System. As either a private or a public employer, a
994	charter school may contract for services with an individual or
995	group of individuals who are organized as a partnership or a
996	cooperative. Individuals or groups of individuals who contract
997	their services to the charter school are not public employees.
998	(13)  CHARTER SCHOOL COOPERATIVES.--Charter schools may
999	enter into cooperative agreements to form charter school
1000	cooperative organizations that may provide the following
1001	services: charter school planning and development, direct
1002	instructional services, and contracts with charter school
1003	governing boards to provide personnel administrative services,
1004	payroll services, human resource management, evaluation and
1005	assessment services, teacher preparation, and professional
1006	development.
1007	(14)  CHARTER SCHOOL FINANCIAL ARRANGEMENTS;
1008	INDEMNIFICATION OF THE STATE AND SCHOOL DISTRICT; CREDIT OR
1009	TAXING POWER NOT TO BE PLEDGED.--Any arrangement entered into to
1010	borrow or otherwise secure funds for a charter school authorized
1011	in this section from a source other than the state or a school
1012	district shall indemnify the state and the school district from
1013	any and all liability, including, but not limited to, financial
1014	responsibility for the payment of the principal or interest. Any
1015	loans, bonds, or other financial agreements are not obligations
1016	of the state or the school district but are obligations of the
1017	charter school authority and are payable solely from the sources
1018	of funds pledged by such agreement. The credit or taxing power
1019	of the state or the school district shall not be pledged and no
1020	debts shall be payable out of any moneys except those of the
1021	legal entity in possession of a valid charter approved by a
1022	district school board pursuant to this section.
1023	(15)  CHARTER SCHOOLS-IN-THE-WORKPLACE; CHARTER SCHOOLS-IN-
1024	A-MUNICIPALITY.--
1025	(a)  In order to increase business partnerships in
1026	education, to reduce school and classroom overcrowding
1027	throughout the state, and to offset the high costs for
1028	educational facilities construction, the Legislature intends to
1029	encourage the formation of business partnership schools or
1030	satellite learning centers and municipal-operated schools
1031	through charter school status.
1032	(b)  A charter school-in-the-workplace may be established
1033	when a business partner provides the school facility to be used;
1034	enrolls students based upon a random lottery that involves all
1035	of the children of employees of that business or corporation who
1036	are seeking enrollment, as provided for in subsection (10); and
1037	enrolls students according to the racial/ethnic balance
1038	provisions described in subparagraph (7)(a)8. Any portion of a
1039	facility used for a public charter school shall be exempt from
1040	ad valorem taxes, as provided for in s. 1013.54, for the
1041	duration of its use as a public school.
1042	(c)  A charter school-in-a-municipality designation may be
1043	granted to a municipality that possesses a charter; enrolls
1044	students based upon a random lottery that involves all of the
1045	children of the residents of that municipality who are seeking
1046	enrollment, as provided for in subsection (10); and enrolls
1047	students according to the racial/ethnic balance provisions
1048	described in subparagraph (7)(a)8. When a municipality has
1049	submitted charter applications for the establishment of a
1050	charter school feeder pattern, consisting of elementary, middle,
1051	and senior high schools, and each individual charter application
1052	is approved by the district school board, such schools shall
1053	then be designated as one charter school for all purposes listed
1054	pursuant to this section. Any portion of the land and facility
1055	used for a public charter school shall be exempt from ad valorem
1056	taxes, as provided for in s. 1013.54, for the duration of its
1057	use as a public school.
1058	(d)  As used in this subsection, the terms "business
1059	partner" or "municipality" may include more than one business or
1060	municipality to form a charter school-in-the-workplace or
1061	charter school-in-a-municipality.
1062	(16)  EXEMPTION FROM STATUTES.--
1063	(a)  A charter school shall operate in accordance with its
1064	charter and shall be exempt from all statutes in chapters 1000-
1065	1013. However, a charter school shall be in compliance with the
1066	following statutes in chapters 1000-1013:
1067	1.  Those statutes specifically applying to charter
1068	schools, including this section.
1069	2.  Those statutes pertaining to the student assessment
1070	program and school grading system.
1071	3.  Those statutes pertaining to the provision of services
1072	to students with disabilities.
1073	4.  Those statutes pertaining to civil rights, including s.
1074	1000.05, relating to discrimination.
1075	5.  Those statutes pertaining to student health, safety,
1076	and welfare.
1077	(b)  Additionally, a charter school shall be in compliance
1078	with the following statutes:
1079	1.  Section 286.011, relating to public meetings and
1080	records, public inspection, and criminal and civil penalties.
1081	2.  Chapter 119, relating to public records.
1082	(17)  FUNDING.--Students enrolled in a charter school,
1083	regardless of the sponsorship, shall be funded as if they are in
1084	a basic program or a special program, the same as students
1085	enrolled in other public schools in the school district. Funding
1086	for a charter lab school shall be as provided in s. 1002.32.
1087	(a)  Each charter school shall report its student
1088	enrollment to the district school board as required in s.
1089	1011.62, and in accordance with the definitions in s. 1011.61.
1090	The district school board shall include each charter school's
1091	enrollment in the district's report of student enrollment. All
1092	charter schools submitting student record information required
1093	by the Department of Education shall comply with the Department
1094	of Education's guidelines for electronic data formats for such
1095	data, and all districts shall accept electronic data that
1096	complies with the Department of Education's electronic format.
1097	(b)  The basis for the agreement for funding students
1098	enrolled in a charter school shall be the sum of the school
1099	district's operating funds from the Florida Education Finance
1100	Program as provided in s. 1011.62 and the General Appropriations
1101	Act, including gross state and local funds, discretionary
1102	lottery funds, and funds from the school district's current
1103	operating discretionary millage levy; divided by total funded
1104	weighted full-time equivalent students in the school district;
1105	multiplied by the weighted full-time equivalent students for the
1106	charter school. Charter schools whose students or programs meet
1107	the eligibility criteria in law shall be entitled to their
1108	proportionate share of categorical program funds included in the
1109	total funds available in the Florida Education Finance Program
1110	by the Legislature, including transportation. Total funding for
1111	each charter school shall be recalculated during the year to
1112	reflect the revised calculations under the Florida Education
1113	Finance Program by the state and the actual weighted full-time
1114	equivalent students reported by the charter school during the
1115	full-time equivalent student survey periods designated by the
1116	Commissioner of Education.
1117	(c)  If the district school board is providing programs or
1118	services to students funded by federal funds, any eligible
1119	students enrolled in charter schools in the school district
1120	shall be provided federal funds for the same level of service
1121	provided students in the schools operated by the district school
1122	board. Pursuant to provisions of 20 U.S.C. 8061 s. 10306, all
1123	charter schools shall receive all federal funding for which the
1124	school is otherwise eligible, including Title I funding, not
1125	later than 5 months after the charter school first opens and
1126	within 5 months after any subsequent expansion of enrollment.
1127	(d)  District school boards shall make every effort to
1128	ensure that charter schools receive timely and efficient payment
1129	and reimbursement to charter schools, including processing
1130	paperwork required to access special state and federal funding
1131	for which they may be eligible. The district school board may
1132	distribute funds to a charter school for up to 3 months based on
1133	the projected full-time equivalent student membership of the
1134	charter school. Thereafter, the results of full-time equivalent
1135	student membership surveys shall be used in adjusting the amount
1136	of funds distributed monthly to the charter school for the
1137	remainder of the fiscal year. The payment shall be issued no
1138	later than 10 working days after the district school board
1139	receives a distribution of state or federal funds. If a warrant
1140	for payment is not issued within 10 30 working days after
1141	receipt of funding by the district school board, the school
1142	district shall pay to the charter school, in addition to the
1143	amount of the scheduled disbursement, interest at a rate of 5 1
1144	percent per month calculated on a daily basis on the unpaid
1145	balance from the expiration of the 10 working days 30-day period
1146	until such time as the warrant is issued. The Commissioner of
1147	Education is authorized to withhold funds from school districts
1148	that fail to make timely payments and reimbursements.
1149	(e)  The State Board of Education shall have authority to
1150	impose a fine on or withhold lottery funds from a school
1151	district for any violation of the procedural requirements for
1152	charter school application, termination, or nonrenewal appeals
1153	regardless of whether the violation affects the fairness of the
1154	appeal process or the correctness of the action taken by the
1155	school district. Prior to the imposition of a fine or
1156	withholding of lottery funds under this paragraph, the State
1157	Board of Education shall provide the school district with notice
1158	of the amount of the proposed fine and an opportunity to be
1159	heard at a subsequent meeting of the State Board of Education.
1160	The funds collected for fines under this paragraph shall be
1161	taken from the school district's administrative fee under
1162	paragraph (20)(a) and disbursed to the prevailing charter school
1163	appellant under this section or, if the charter school
1164	appellant's appeal is denied, in equal amounts to each of the
1165	charter schools within the school district. The imposition of a
1166	fine under this paragraph shall not exceed $10,000 and is a
1167	final action subject to judicial review in the district court of
1168	appeals.
1169	(18)  FACILITIES.--
1170	(a)  A startup charter school shall utilize facilities
1171	which comply with the Florida Building Code pursuant to chapter
1172	553 except for the State Requirements for Educational
1173	Facilities. Conversion charter schools shall utilize facilities
1174	which comply with the State Requirements for Educational
1175	Facilities provided that the school district and the charter
1176	school have entered into a mutual management plan with
1177	sufficient funding from the school district to comply with the
1178	State Requirements for Educational Facilities. Charter schools,
1179	with the exception of conversion charter schools, are not
1180	required to comply, but may choose to comply, with the State
1181	Requirements for Educational Facilities of the Florida Building
1182	Code adopted pursuant to s. 1013.37. The local governing
1183	authority shall not adopt or impose local building requirements
1184	or restrictions that are more stringent than those found in the
1185	Florida Building Code. The agency having jurisdiction for
1186	inspection of a facility and issuance of a certificate of
1187	occupancy shall be the local municipality or, if in an
1188	unincorporated area, the county governing authority.
1189	(b)  A charter school shall utilize facilities that comply
1190	with the Florida Fire Prevention Code, pursuant to s. 633.025,
1191	as adopted by the authority in whose jurisdiction the facility
1192	is located as provided in paragraph (a).
1193	(c)  Any facility, or portion thereof, used to house a
1194	charter school whose charter has been approved by the sponsor
1195	and the governing board, pursuant to subsection (7), shall be
1196	exempt from ad valorem taxes pursuant to s. 196.1983. Library,
1197	community service, museum, performing arts, theatre, cinema,
1198	church, community college, college, and university facilities
1199	may provide space to charter schools within their facilities
1200	under their preexisting zoning and land use designations.
1201	(d)  Charter school facilities are exempt from assessments
1202	of fees for building permits, except as provided in s. 553.80,
1203	fees and for building and occupational licenses, and from
1204	assessments of impact fees or service availability fees.
1205	(e)  If a district school board facility or property is
1206	available because it is surplus, marked for disposal, or
1207	otherwise unused, it shall be provided for a charter school's
1208	use on the same basis as it is made available to other public
1209	schools in the district. A charter school receiving property
1210	from the school district may not sell or dispose of such
1211	property without written permission of the school district.
1212	Similarly, for an existing public school converting to charter
1213	status, no rental or leasing fee for the existing facility or
1214	for the property normally inventoried to the conversion school
1215	may be charged by the district school board to the parents and
1216	teachers organizing the charter school. The charter school
1217	organizers shall agree to reasonable maintenance provisions in
1218	order to maintain the facility in a manner similar to district
1219	school board standards. The Public Education Capital Outlay
1220	maintenance funds or any other maintenance funds generated by
1221	the facility operated as a conversion school shall remain with
1222	the conversion school.
1223	(f)  To the extent that charter school facilities are
1224	specifically created to mitigate the educational impact created
1225	by the development of new residential dwelling units, pursuant
1226	to subparagraph (2)(c)4., some of or all of the educational
1227	impact fees required to be paid in connection with the new
1228	residential dwelling units may be designated instead for the
1229	construction of the charter school facilities that will mitigate
1230	the student station impact. Such facilities shall be built to
1231	the State Requirements for Educational Facilities and shall be
1232	owned by a public or nonprofit entity. The local school district
1233	retains the right to monitor and inspect such facilities to
1234	ensure compliance with the State Requirements for Educational
1235	Facilities. If a facility ceases to be used for public
1236	educational purposes, either the facility shall revert to the
1237	school district subject to any debt owed on the facility, or the
1238	owner of the facility shall have the option to refund all
1239	educational impact fees utilized for the facility to the school
1240	district. The district and the owner of the facility may
1241	contractually agree to another arrangement for the facilities if
1242	the facilities cease to be used for educational purposes. The
1243	owner of property planned or approved for new residential
1244	dwelling units and the entity levying educational impact fees
1245	shall enter into an agreement that designates the educational
1246	impact fees that will be allocated for the charter school
1247	student stations and that ensures the timely construction of the
1248	charter school student stations concurrent with the expected
1249	occupancy of the residential units. The application for use of
1250	educational impact fees shall include an approved charter school
1251	application. To assist the school district in forecasting
1252	student station needs, the entity levying the impact fees shall
1253	notify the affected district of any agreements it has approved
1254	for the purpose of mitigating student station impact from the
1255	new residential dwelling units.
1256	(19)  CAPITAL OUTLAY FUNDING.--Charter schools are eligible
1257	for capital outlay funds pursuant to s. 1013.62.
1258	(20)  SERVICES.--
1259	(a)  A sponsor shall provide certain administrative and
1260	educational services to charter schools. These services shall
1261	include contract management services; full-time equivalent and
1262	data reporting services; exceptional student education
1263	administration and evaluation services; test administration
1264	services, including payment of the costs of state-required or
1265	district-required student assessments; processing of teacher
1266	certificate data services; and information services, including
1267	equal access to student information systems that are used by
1268	public schools in the district in which the charter school is
1269	located. A total administrative fee for the provision of such
1270	services shall be calculated based upon up to 5 percent of the
1271	available funds defined in paragraph (17)(b) for all students.
1272	However, a sponsor may only withhold up to a 5-percent
1273	administrative fee for enrollment for up to and including 500
1274	students. For charter schools with a population of 501 or more
1275	students, the difference between the total administrative fee
1276	calculation and the amount of the administrative fee withheld
1277	may only be used for capital outlay purposes specified in s.
1278	1013.62(4)(2). Sponsors shall not charge charter schools any
1279	additional fees or surcharges for administrative and educational
1280	services in addition to the maximum 5-percent administrative fee
1281	withheld pursuant to this paragraph.
1282	(b)  If goods and services are made available to the
1283	charter school through the contract with the school district,
1284	they shall be provided to the charter school at a rate no
1285	greater than the district's actual cost unless mutually agreed
1286	upon by the charter school and the sponsor in a contract
1287	negotiated separately from the charter. When mediation has
1288	failed to resolve disputes over contracted services or
1289	contractual matters not included in the charter, an appeal may
1290	be made for a dispute resolution hearing before the Charter
1291	School Appeal Commission. To maximize the use of state funds,
1292	school districts shall allow charter schools to participate in
1293	the sponsor's bulk purchasing program if applicable.
1294	(c)  Transportation of charter school students shall be
1295	provided by the charter school consistent with the requirements
1296	of subpart I.E. of chapter 1006 and s. 1012.45. The governing
1297	body of the charter school may provide transportation through an
1298	agreement or contract with the district school board, a private
1299	provider, or parents. The charter school and the sponsor shall
1300	cooperate in making arrangements that ensure that transportation
1301	is not a barrier to equal access for all students residing
1302	within a reasonable distance of the charter school as determined
1303	in its charter.
1304	(21)  PUBLIC INFORMATION ON CHARTER SCHOOLS.--The
1305	Department of Education shall provide information to the public,
1306	directly and through sponsors, both on how to form and operate a
1307	charter school and on how to enroll in charter schools once they
1308	are created. This information shall include a standard
1309	application format, charter format, and charter renewal format
1310	which shall include the information specified in subsection (7).
1311	These formats shall This application format may be used as
1312	guidelines by charter school sponsors chartering entities.
1313	(22)  CHARTER SCHOOL REVIEW PANEL AND LEGISLATIVE REVIEW.--
1314	(a)  The Department of Education shall staff and regularly
1315	convene a Charter School Review Panel in order to review issues,
1316	practices, and policies regarding charter schools. The
1317	composition of the review panel shall include individuals with
1318	experience in finance, administration, law, education, and
1319	school governance, and individuals familiar with charter school
1320	construction and operation. The panel shall include two
1321	appointees each from the Commissioner of Education, the
1322	President of the Senate, and the Speaker of the House of
1323	Representatives. The Governor shall appoint three members of the
1324	panel and shall designate the chair. Each member of the panel
1325	shall serve a 1-year term, unless renewed by the office making
1326	the appointment. The panel shall make recommendations to the
1327	Legislature, to the Department of Education, to charter schools,
1328	and to school districts for improving charter school operations
1329	and oversight and for ensuring best business practices at and
1330	fair business relationships with charter schools.
1331	(b)  The Legislature shall review the operation of charter
1332	schools during the 2005 Regular Session of the Legislature.
1333	(23)  ANALYSIS OF CHARTER SCHOOL PERFORMANCE.--Upon receipt
1334	of the annual report required by paragraph (9)(m)(l), the
1335	Department of Education shall provide to the State Board of
1336	Education, the Commissioner of Education, the Governor, the
1337	President of the Senate, and the Speaker of the House of
1338	Representatives an analysis and comparison of the overall
1339	performance of charter school students, to include all students
1340	whose scores are counted as part of the statewide assessment
1341	program, versus comparable public school students in the
1342	district as determined by the statewide assessment program
1343	currently administered in the school district, and other
1344	assessments administered pursuant to s. 1008.22(3).
1345	(24)  RULEMAKING.--The Department of Education, after
1346	consultation with school districts and charter school directors,
1347	shall recommend that the State Board of Education adopt rules to
1348	implement specific subsections of this section. Such rules shall
1349	require minimum paperwork and shall not limit charter school
1350	flexibility authorized by statute.
1351	Section 2.  Subsection (5) of section 218.39, Florida
1352	Statutes, is amended to read:
1353	218.39  Annual financial audit reports.--
1354	(5)  At the conclusion of the audit, the auditor shall
1355	discuss with the chair of each local governmental entity or the
1356	chair's designee, or with the elected official of each county
1357	agency or with the elected official's designee, or with the
1358	chair of the district school board or the chair's designee, or
1359	with the chair of the board of the charter school or the chair's
1360	designee, or with the chair of the charter technical career
1361	center or the chair's designee, as appropriate, all of the
1362	auditor's comments that will be included in the audit report. If
1363	the officer is not available to discuss the auditor's comments,
1364	their discussion is presumed when the comments are delivered in
1365	writing to his or her office. The auditor shall notify each
1366	member of the governing body of a local governmental entity, or
1367	district school board, or charter school for which deteriorating
1368	financial conditions exist that may cause a condition described
1369	in s. 218.503(1) to occur if actions are not taken to address
1370	such conditions.
1371	Section 3.  Section 218.50, Florida Statutes, is amended to
1372	read:
1373	218.50  Short title.--Sections 218.50-218.504 may be cited
1374	as the "Local Governmental Entity, Charter School, and District
1375	School Board Financial Emergencies Act."
1376	Section 4.  Section 218.501, Florida Statutes, is amended
1377	to read:
1378	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
1379	(1)  To promote the fiscal responsibility of local
1380	governmental entities, charter schools, and district school
1381	boards.
1382	(2)  To assist local governmental entities, charter
1383	schools, and district school boards in providing essential
1384	services without interruption and in meeting their financial
1385	obligations.
1386	(3)  To assist local governmental entities, charter
1387	schools, and district school boards through the improvement of
1388	local financial management procedures.
1389	Section 5.  Section 218.503, Florida Statutes, is amended
1390	to read:
1391	218.503  Determination of financial emergency.--
1392	(1)  Local governmental entities, charter schools, and
1393	district school boards shall be subject to review and oversight
1394	by the Governor, charter school sponsor, or the Commissioner of
1395	Education, as appropriate, when any one of the following
1396	conditions occurs:
1397	(a)  Failure within the same fiscal year in which due to
1398	pay short-term loans or failure to make bond debt service or
1399	other long-term debt payments when due, as a result of a lack of
1400	funds.
1401	(b)  Failure to pay uncontested claims from creditors
1402	within 90 days after the claim is presented, as a result of a
1403	lack of funds.
1404	(c)  Failure to transfer at the appropriate time, due to
1405	lack of funds:
1406	1.  Taxes withheld on the income of employees; or
1407	2.  Employer and employee contributions for:
1408	a.  Federal social security; or
1409	b.  Any pension, retirement, or benefit plan of an
1410	employee.
1411	(d)  Failure for one pay period to pay, due to lack of
1412	funds:
1413	1.  Wages and salaries owed to employees; or
1414	2.  Retirement benefits owed to former employees.
1415	(e)  An unreserved or total fund balance or retained
1416	earnings deficit, or unrestricted or total net assets deficit,
1417	as reported on the balance sheet or statement of net assets on
1418	the general purpose or fund financial statements, for which
1419	sufficient resources of the local governmental entity, as
1420	reported on the balance sheet or statement of net assets on the
1421	general purpose or fund financial statements, are not available
1422	to cover the deficit. Resources available to cover reported
1423	deficits include net assets that are not otherwise restricted by
1424	federal, state, or local laws, bond covenants, contractual
1425	agreements, or other legal constraints. Fixed or capital assets,
1426	the disposal of which would impair the ability of a local
1427	governmental entity to carry out its functions, are not
1428	considered resources available to cover reported deficits.
1429	(2)  A local governmental entity shall notify the Governor
1430	and the Legislative Auditing Committee, a charter school shall
1431	notify the charter school sponsor and the Legislative Auditing
1432	Committee, and a district school board shall notify the
1433	Commissioner of Education and the Legislative Auditing
1434	Committee, when one or more of the conditions specified in
1435	subsection (1) have occurred or will occur if action is not
1436	taken to assist the local governmental entity, charter school,
1437	or district school board. In addition, any state agency must,
1438	within 30 days after a determination that one or more of the
1439	conditions specified in subsection (1) have occurred or will
1440	occur if action is not taken to assist the local governmental
1441	entity, charter school, or district school board, notify the
1442	Governor, charter school sponsor, or the Commissioner of
1443	Education, as appropriate, and the Legislative Auditing
1444	Committee.
1445	(3)  Upon notification that one or more of the conditions
1446	in subsection (1) exist, the Governor or his or her designee
1447	shall contact the local governmental entity or the Commissioner
1448	of Education or his or her designee shall contact the district
1449	school board to determine what actions have been taken by the
1450	local governmental entity or the district school board to
1451	resolve the condition. The Governor or the Commissioner of
1452	Education, as appropriate, shall determine whether the local
1453	governmental entity or the district school board needs state
1454	assistance to resolve the condition. If state assistance is
1455	needed, the local governmental entity or district school board
1456	is considered to be in a state of financial emergency. The
1457	Governor or the Commissioner of Education, as appropriate, has
1458	the authority to implement measures as set forth in ss. 218.50-
1459	218.504 to assist the local governmental entity or district
1460	school board in resolving the financial emergency. Such measures
1461	may include, but are not limited to:
1462	(a)  Requiring approval of the local governmental entity's
1463	budget by the Governor or approval of the district school
1464	board's budget by the Commissioner of Education.
1465	(b)  Authorizing a state loan to a local governmental
1466	entity and providing for repayment of same.
1467	(c)  Prohibiting a local governmental entity or district
1468	school board from issuing bonds, notes, certificates of
1469	indebtedness, or any other form of debt until such time as it is
1470	no longer subject to this section.
1471	(d)  Making such inspections and reviews of records,
1472	information, reports, and assets of the local governmental
1473	entity or district school board. The appropriate local officials
1474	shall cooperate in such inspections and reviews.
1475	(e)  Consulting with officials and auditors of the local
1476	governmental entity or the district school board and the
1477	appropriate state officials regarding any steps necessary to
1478	bring the books of account, accounting systems, financial
1479	procedures, and reports into compliance with state requirements.
1480	(f)  Providing technical assistance to the local
1481	governmental entity or the district school board.
1482	(g)1.  Establishing a financial emergency board to oversee
1483	the activities of the local governmental entity or the district
1484	school board. If a financial emergency board is established for
1485	a local governmental entity, the Governor shall appoint board
1486	members and select a chair. If a financial emergency board is
1487	established for a district school board, the State Board of
1488	Education shall appoint board members and select a chair. The
1489	financial emergency board shall adopt such rules as are
1490	necessary for conducting board business. The board may:
1491	a.  Make such reviews of records, reports, and assets of
1492	the local governmental entity or the district school board as
1493	are needed.
1494	b.  Consult with officials and auditors of the local
1495	governmental entity or the district school board and the
1496	appropriate state officials regarding any steps necessary to
1497	bring the books of account, accounting systems, financial
1498	procedures, and reports of the local governmental entity or the
1499	district school board into compliance with state requirements.
1500	c.  Review the operations, management, efficiency,
1501	productivity, and financing of functions and operations of the
1502	local governmental entity or the district school board.
1503	2.  The recommendations and reports made by the financial
1504	emergency board must be submitted to the Governor for local
1505	governmental entities or to the Commissioner of Education and
1506	the State Board of Education for district school boards for
1507	appropriate action.
1508	(h)  Requiring and approving a plan, to be prepared by
1509	officials of the local governmental entity or the district
1510	school board in consultation with the appropriate state
1511	officials, prescribing actions that will cause the local
1512	governmental entity or district school board to no longer be
1513	subject to this section. The plan must include, but need not be
1514	limited to:
1515	1.  Provision for payment in full of obligations outlined
1516	in subsection (1), designated as priority items, that are
1517	currently due or will come due.
1518	2.  Establishment of priority budgeting or zero-based
1519	budgeting in order to eliminate items that are not affordable.
1520	3.  The prohibition of a level of operations which can be
1521	sustained only with nonrecurring revenues.
1522	(4)  Upon notification that one or more of the conditions
1523	in subsection (1) exist, the charter school sponsor or the
1524	sponsor's designee shall contact the charter school governing
1525	board to determine what actions have been taken by the charter
1526	school governing board to resolve the condition. The charter
1527	school sponsor has the authority to require and approve a
1528	financial recovery plan, to be prepared by the charter school
1529	governing board, prescribing actions that will cause the charter
1530	school to no longer be subject to this section. The Department
1531	of Education must establish guidelines for developing such
1532	plans.
1533	(5)(4)  A local governmental entity or district school
1534	board may not seek application of laws under the bankruptcy
1535	provisions of the United States Constitution except with the
1536	prior approval of the Governor for local governmental entities
1537	or the Commissioner of Education for district school boards.
1538	(6)(5)(a)  The governing authority of any municipality
1539	having a resident population of 300,000 or more on or after
1540	April 1, 1999, which has been declared in a state of financial
1541	emergency pursuant to this section may impose a discretionary
1542	per-vehicle surcharge of up to 20 percent on the gross revenues
1543	of the sale, lease, or rental of space at parking facilities
1544	within the municipality which are open for use to the general
1545	public.
1546	(b)  A municipal governing authority that imposes the
1547	surcharge authorized by this subsection may use the proceeds of
1548	such surcharge for the following purposes only:
1549	1.  No less than 60 percent and no more than 80 percent of
1550	the surcharge proceeds shall be used by the governing authority
1551	to reduce its ad valorem tax millage rate or to reduce or
1552	eliminate non-ad valorem assessments.
1553	2.  A portion of the balance of the surcharge proceeds
1554	shall be used by the governing authority to increase its budget
1555	reserves; however, the governing authority shall not reduce the
1556	amount it allocates for budget reserves from other sources below
1557	the amount allocated for reserves in the fiscal year prior to
1558	the year in which the surcharge is initially imposed. When a 15-
1559	percent budget reserve is achieved, based on the average gross
1560	revenue for the most recent 3 prior fiscal years, the remaining
1561	proceeds from this subparagraph shall be used for the payment of
1562	annual debt service related to outstanding obligations backed or
1563	secured by a covenant to budget and appropriate from non-ad
1564	valorem revenues.
1565	(c)  This subsection expires June 30, 2006.
1566	Section 6.  Subsection (1) of section 218.504, Florida
1567	Statutes, is amended to read:
1568	218.504  Cessation of state action.--The Governor or the
1569	Commissioner of Education, as appropriate, has the authority to
1570	terminate all state actions pursuant to ss. 218.50-218.504.
1571	Cessation of state action must not occur until the Governor or
1572	the Commissioner of Education, as appropriate, has determined
1573	that:
1574	(1)  The local governmental entity, charter school, or
1575	district school board:
1576	(a)  Has established and is operating an effective
1577	financial accounting and reporting system.
1578	(b)  Has resolved the conditions outlined in s. 218.503(1).
1579	Section 7.  Paragraph (e) of subsection (7) and subsection
1580	(8) of section 11.45, Florida Statutes, are amended to read:
1581	11.45  Definitions; duties; authorities; reports; rules.--
1582	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--
1583	(e)  The Auditor General shall notify the Governor or the
1584	Commissioner of Education, as appropriate, and the Legislative
1585	Auditing Committee of any audit report reviewed by the Auditor
1586	General pursuant to paragraph (b) which contains a statement
1587	that a local governmental entity, charter school, or district
1588	school board has met one or more of the conditions specified in
1589	s. 218.503. If the Auditor General requests a clarification
1590	regarding information included in an audit report to determine
1591	whether a local governmental entity, charter school, or district
1592	school board has met one or more of the conditions specified in
1593	s. 218.503, the requested clarification must be provided within
1594	45 days after the date of the request. If the local governmental
1595	entity, charter school, or district school board does not comply
1596	with the Auditor General's request, the Auditor General shall
1597	notify the Legislative Auditing Committee. If, after obtaining
1598	the requested clarification, the Auditor General determines that
1599	the local governmental entity, charter school, or district
1600	school board has met one or more of the conditions specified in
1601	s. 218.503, he or she shall notify the Governor or the
1602	Commissioner of Education, as appropriate, and the Legislative
1603	Auditing Committee.
1604	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
1605	consultation with the Board of Accountancy, shall adopt rules
1606	for the form and conduct of all financial audits performed by
1607	independent certified public accountants pursuant to ss.
1608	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
1609	audits of local governmental entities, charter schools, and
1610	district school boards must include, but are not limited to,
1611	requirements for the reporting of information necessary to carry
1612	out the purposes of the Local Governmental Entity, Charter
1613	School, and District School Board Financial Emergencies Act as
1614	stated in s. 218.501.
1615	Section 8.  Subsection (1) and paragraph (a) of subsection
1616	(2) of section 166.271, Florida Statutes, are amended to read:
1617	166.271  Surcharge on municipal facility parking fees.--
1618	(1)  The governing authority of any municipality with a
1619	resident population of 200,000 or more, more than 20 percent of
1620	the real property of which is exempt from ad valorem taxes, and
1621	which is located in a county with a population of more than
1622	500,000 may impose and collect, subject to referendum approval
1623	by voters in the municipality, a discretionary per vehicle
1624	surcharge of up to 15 percent of the amount charged for the
1625	sale, lease, or rental of space at parking facilities within the
1626	municipality which are open for use to the general public and
1627	which are not airports, seaports, county administration
1628	buildings, or other projects as defined under ss. 125.011 and
1629	125.015, provided that this surcharge shall not take effect
1630	while any surcharge imposed pursuant to s. 218.503(6)(5)(a), is
1631	in effect.
1632	(2)  A municipal governing authority that imposes the
1633	surcharge authorized by this subsection may use the proceeds of
1634	such surcharge for the following purposes only:
1635	(a)  No less than 60 percent and no more than 80 percent of
1636	surcharge proceeds shall be used to reduce the municipality's ad
1637	valorem tax millage or to reduce or eliminate non-ad valorem
1638	assessments, unless the municipality has previously used the
1639	proceeds from the surcharge levied under s. 218.503(6)(5)(b) to
1640	reduce the municipality's ad valorem tax millage or to reduce
1641	non-ad valorem assessments.
1642	Section 9.  Paragraph (a) of subsection (9) and paragraph
1643	(b) of subsection (11) of section 1002.32, Florida Statutes, are
1644	amended to read:
1645	1002.32  Developmental research (laboratory) schools.--
1646	(9)  FUNDING.--Funding for a lab school, including a
1647	charter lab school, shall be provided as follows:
1648	(a)  Each lab school shall be allocated its proportional
1649	share of operating funds from the Florida Education Finance
1650	Program as provided in s. 1011.62 based on the county in which
1651	the lab school is located and the General Appropriations Act.
1652	The nonvoted ad valorem millage that would otherwise be required
1653	for lab schools shall be allocated from state funds. The
1654	required local effort funds calculated pursuant to s. 1011.62
1655	shall be allocated from state funds to the schools as a part of
1656	the allocation of operating funds pursuant to s. 1011.62. Each
1657	eligible lab school in operation as of September 1, 2002, shall
1658	also receive a proportional share of the sparsity supplement as
1659	calculated pursuant to s. 1011.62. In addition, each lab school
1660	shall receive its proportional share of all categorical funds,
1661	with the exception of s. 1011.68, and new categorical funds
1662	enacted after July 1, 1994, for the purpose of elementary or
1663	secondary academic program enhancement. However, if a lab
1664	school, in the fulfillment of its requirements to have a
1665	representative student population pursuant to subsection (4),
1666	elects to provide student transportation, the lab school shall
1667	be eligible for funding pursuant to s. 1011.68. The sum of funds
1668	available as provided in this paragraph shall be included
1669	annually in the Florida Education Finance Program and
1670	appropriate categorical programs funded in the General
1671	Appropriations Act.
1672	(11)  EXCEPTIONS TO LAW.--To encourage innovative practices
1673	and facilitate the mission of the lab schools, in addition to
1674	the exceptions to law specified in s. 1001.23(2), the following
1675	exceptions shall be permitted for lab schools:
1676	(b)  With the exception of s. 1001.42(16), s. 1001.42 shall
1677	be held in abeyance, except that a lab school, in the
1678	fulfillment of its requirements to have a representative student
1679	population pursuant to subsection (4), may elect to provide
1680	transportation in accordance with s. 1001.42(8). Reference to
1681	district school boards in s. 1001.42(16) shall mean the
1682	president of the university or the president's designee.
1683	Section 10.  Subsection (3) of section 1003.05, Florida
1684	Statutes, is amended to read:
1685	1003.05  Assistance to transitioning students from military
1686	families.--
1687	(3)  Dependent children of active duty military personnel
1688	who otherwise meet the eligibility criteria for special academic
1689	programs offered through public schools shall be given first
1690	preference for admission to such programs even if the program is
1691	being offered through a public school other than the school to
1692	which the student would generally be assigned and the school at
1693	which the program is being offered has reached its maximum
1694	enrollment. If such a program is offered through a public school
1695	other than the school to which the student would generally be
1696	assigned, the parent or guardian of the student must assume
1697	responsibility for transporting the student to that school. For
1698	purposes of this subsection, special academic programs include
1699	charter schools, magnet schools, advanced studies programs,
1700	advanced placement, dual enrollment, and International
1701	Baccalaureate.
1702	Section 11.  Effective July 1, 2006, subsection (2) of
1703	section 1012.74, Florida Statutes, is amended to read:
1704	1012.74  Florida educators professional liability insurance
1705	protection.--
1706	(2)(a)  Educator professional liability coverage for all
1707	instructional personnel, including charter school instructional
1708	personnel, as defined by s. 1012.01(2), who are full-time
1709	personnel, as defined by the district school board policy, shall
1710	be provided by specific appropriations under the General
1711	Appropriations Act.
1712	(b)  Educator professional liability coverage shall be
1713	extended at cost to all instructional personnel, including
1714	charter school instructional personnel, as defined by s.
1715	1012.01(2), who are part-time personnel, as defined by the
1716	district school board policy, and choose to participate in the
1717	state-provided program.
1718	(c)  Educator professional liability coverage shall be
1719	extended at cost to all administrative personnel, including
1720	administrative personnel in charter schools, as defined by s.
1721	1012.01(3), who choose to participate in the state-provided
1722	program.
1723	Section 12.  Section 1013.62, Florida Statutes, is amended
1724	to read:
1725	1013.62  Charter schools capital outlay funding.--
1726	(1)  In each year in which funds are appropriated for
1727	charter school capital outlay purposes, the Commissioner of
1728	Education shall allocate the funds among eligible charter
1729	schools. To be eligible for a funding allocation, a charter
1730	school must be one of the following:
1731	(a)  The same school that received capital outlay funding
1732	in 2002-2003.
1733	(b)  A charter school that is an expanded feeder pattern of
1734	a charter school that received capital outlay funding in 2002-
1735	2003.
1736	(2)  If an appropriation for charter school capital outlay
1737	funds is less than the 2002-2003 appropriation, the funds shall
1738	be prorated among schools eligible pursuant to subsection (1).
1739	(3)  If an appropriation for charter school capital outlay
1740	funds is greater than the 2002-2003 appropriation, the funds
1741	shall be allocated to schools eligible pursuant to subsection
1742	(1) and to charter schools that:
1743	(a)1.  Have been in operation for 3 or more years;
1744	2.  Are Be an expanded feeder chain of a charter school
1745	within the same school district that is currently receiving
1746	charter school capital outlay funds; or
1747	3.  Have been accredited by the Commission on Schools of
1748	the Southern Association of Colleges and Schools.
1749	(b)  Have financial stability for future operation as a
1750	charter school.
1751	(c)  Have received a school grade of "A" or "B," pursuant
1752	to s. 1008.34, during 3 of the past 4 school years satisfactory
1753	student achievement based on state accountability standards
1754	applicable to the charter school.
1755	(d)  Have received final approval from its sponsor pursuant
1756	to s. 1002.33 for operation during that fiscal year.
1757	(e)  Serve students in facilities that are not provided by
1758	the charter school's sponsor.
1759
1760	First priority for allocating the amount in excess of the 2002-
1761	2003 appropriation shall be to prorate the excess funds among
1762	charter schools with long-term debt or long-term lease to the
1763	extent that the initial allocation is insufficient to provide
1764	one-fifteenth of the cost-per-student station specified in s.
1765	1013.64(6)(b) and second priority shall be to other eligible
1766	charter schools. Prior to the release of capital outlay funds to
1767	a school district on behalf of the charter school, the
1768	Department of Education shall ensure that the district school
1769	board and the charter school governing board enter into a
1770	written agreement that includes provisions for the reversion of
1771	any unencumbered funds and all equipment and property purchased
1772	with public education funds to the ownership of the district
1773	school board, as provided for in subsection (5)(3), in the event
1774	that the school terminates operations. Any funds recovered by
1775	the state shall be deposited in the General Revenue Fund. A
1776	charter school is not eligible for a funding allocation if it
1777	was created by the conversion of a public school and operates in
1778	facilities provided by the charter school's sponsor for a
1779	nominal fee or at no charge or if it is directly or indirectly
1780	operated by the school district. Unless otherwise provided in
1781	the General Appropriations Act, the funding allocation for each
1782	eligible charter school shall be determined by multiplying the
1783	school's projected student enrollment by one-fifteenth of the
1784	cost-per-student station specified in s. 1013.64(6)(b) for an
1785	elementary, middle, or high school, as appropriate. If the funds
1786	appropriated are not sufficient, the commissioner shall prorate
1787	the available funds among eligible charter schools. However, no
1788	charter school or charter lab school shall receive state charter
1789	school capital outlay funds in excess of the one-fifteenth cost
1790	per student station formula if the charter school's combination
1791	of state charter school capital outlay funds, capital outlay
1792	funds calculated through the reduction in the administrative fee
1793	provided in s. 1002.33(20), and capital outlay funds allowed in
1794	s. 1002.32(9)(e) and (h) exceeds the one-fifteenth cost per
1795	student station formula. Funds shall be distributed on the basis
1796	of the capital outlay full-time equivalent membership by grade
1797	level, which shall be calculated by averaging the results of the
1798	second and third enrollment surveys. The Department of Education
1799	shall distribute capital outlay funds monthly, beginning in the
1800	first quarter of the fiscal year, based on one-twelfth of the
1801	amount the department reasonably expects the charter school to
1802	receive during that fiscal year. The commissioner shall adjust
1803	subsequent distributions as necessary to reflect each charter
1804	school's actual student enrollment as reflected in the second
1805	and third enrollment surveys. The commissioner shall establish
1806	the intervals and procedures for determining the projected and
1807	actual student enrollment of eligible charter schools.
1808	(4)(2)  A charter school's governing body may use charter
1809	school capital outlay funds for the following purposes:
1810	(a)  Purchase of real property.
1811	(b)  Construction of school facilities.
1812	(c)  Purchase, lease-purchase, or lease of permanent or
1813	relocatable school facilities.
1814	(d)  Purchase of vehicles to transport students to and from
1815	the charter school.
1816	(e)  Renovation, repair, and maintenance of school
1817	facilities that the charter school owns or is purchasing through
1818	a lease-purchase or long-term lease of 5 years or longer or
1819	furnishing or equipping such facilities.
1820
1821	Conversion charter schools may use capital outlay funds received
1822	through the reduction in the administrative fee provided in s.
1823	1002.33(20) for renovation, repair, and maintenance of school
1824	facilities that are owned by the sponsor.
1825	(5)(3)  When a charter school is nonrenewed or terminated,
1826	any unencumbered funds and all equipment and property purchased
1827	with district public funds shall revert to the ownership of the
1828	district school board, as provided for in s. 1002.33(8)(e) and
1829	(f). In the case of a charter lab school, any unencumbered funds
1830	and all equipment and property purchased with university public
1831	funds shall revert to the ownership of the state university that
1832	issued the charter. The reversion of such equipment, property,
1833	and furnishings shall focus on recoverable assets, but not on
1834	intangible or irrecoverable costs such as rental or leasing
1835	fees, normal maintenance, and limited renovations. The reversion
1836	of all property secured with public funds is subject to the
1837	complete satisfaction of all lawful liens or encumbrances. If
1838	there are additional local issues such as the shared use of
1839	facilities or partial ownership of facilities or property, these
1840	issues shall be agreed to in the charter contract prior to the
1841	expenditure of funds.
1842	(6)(4)  The Commissioner of Education shall specify
1843	procedures for submitting and approving requests for funding
1844	under this section and procedures for documenting expenditures.
1845	(7)(5)  The annual legislative budget request of the
1846	Department of Education shall include a request for capital
1847	outlay funding for charter schools. The request shall be based
1848	on the projected number of students to be served in charter
1849	schools who meet the eligibility requirements of this section. A
1850	dedicated funding source, if identified in writing by the
1851	Commissioner of Education and submitted along with the annual
1852	charter school legislative budget request, may be considered an
1853	additional source of funding.
1854	(8)(6)  Unless authorized otherwise by the Legislature,
1855	allocation and proration of charter school capital outlay funds
1856	shall be made to eligible charter schools by the Commissioner of
1857	Education in an amount and in a manner authorized by subsections
1858	(2) and (3) subsection (1).
1859	(7)  Notwithstanding the provisions of this section,
1860	beginning in the 2003-2004 fiscal year:
1861	(a)  If the appropriation for charter school capital outlay
1862	funds is no greater than the 2002-2003 appropriation, the funds
1863	shall be allocated according to the formula outlined in
1864	subsection (1) to:
1865	1.  The same schools that received funding in 2002-2003.
1866	2.  Schools that are an expanded feeder pattern of schools
1867	that received funding in 2002-2003.
1868	3.  Schools that have an approved charter and are serving
1869	students at the start of the 2003-2004 school year and either
1870	incurred long-term financial obligations prior to January 31,
1871	2003, or began construction on educational facilities prior to
1872	December 31, 2002.
1873	(b)  If the appropriation for charter school capital outlay
1874	funds is less than the 2002-2003 appropriation, the funds shall
1875	be prorated among the schools eligible in paragraph (a).
1876	(c)  If the appropriation for charter school capital outlay
1877	funds is greater than the 2002-2003 appropriation, the amount of
1878	funds provided in the 2002-2003 appropriation shall be allocated
1879	according to paragraph (a). First priority for allocating the
1880	amount in excess of the 2002-2003 appropriation shall be to
1881	prorate the excess funds among the charter schools with long-
1882	term debt or long-term lease to the extent that the initial
1883	allocation is insufficient to provide one-fifteenth of the cost
1884	per student station specified in s. 1013.64(6)(b), and second
1885	priority shall be to other eligible charter schools.
1886	Section 13.  Except as otherwise provided herein, this act
1887	shall take effect upon becoming a law.

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