HB 5005

1	A bill to be entitled
2	An act relating to education funding; amending s. 551.106,
3	F.S.; allowing slot machine tax revenue to be made
4	available for bond payments if necessary to comply with
5	bond covenants; amending s. 1001.451, F.S.; authorizing
6	regional consortium service organizations to determine the
7	use of funds; specifying the time period for distribution
8	of funds; amending s. 1002.71, F.S.; authorizing
9	additional full-time equivalent student membership for
10	summer voluntary prekindergarten education programs at
11	public schools; amending s. 1009.535, F.S.; increasing the
12	award for Florida Medallion Scholars enrolled in community
13	college associate degree programs; creating s. 1010.62,
14	F.S., relating to revenue bonds and debt; providing
15	definitions; authorizing the Board of Governors to request
16	the issuance of revenue bonds for certain purposes;
17	providing for such bonds to be secured by or payable from
18	certain specified revenues; authorizing certain covenants,
19	commitments, or other provisions; providing for the
20	issuance of debt by a state university or direct-support
21	organization upon the approval of the Board of Governors;
22	providing requirements for such approval; authorizing
23	state universities and direct-support organizations to
24	lease-purchase equipment, issue promissory notes, and
25	secure debt with gifts and donations under certain
26	circumstances without approval of the Board of Governors;
27	providing requirements for a board of trustees in
28	obtaining approval for revenue bonds and capital outlay
29	projects; providing for the approval of certain specified
30	projects; authorizing the Board of Governors to adopt
31	policies; providing for the continued effect of current
32	commitments, contracts, or other obligations; amending s.
33	1011.62, F.S.; revising provisions relating to the funding
34	computation of special programs; revising provisions
35	relating to funding for instruction beyond the regular
36	school year; authorizing additional full-time equivalent
37	student membership for completion of high school level
38	algebra courses by certain students in grades 6 through 8;
39	authorizing additional full-time equivalent student
40	membership for the Florida Virtual School; revising
41	provisions relating to the prior year final taxable value;
42	establishing the discretionary millage compression
43	supplement and providing for the allocation of funds;
44	conforming provisions and correcting cross-references;
45	amending s. 1011.71, F.S.; revising provisions relating to
46	the discretionary millage levy prescribed by the
47	Legislature; amending s. 1013.62, F.S.; revising charter
48	school capital outlay allocation of funds; amending s.
49	1013.64, F.S.; revising construction cost maximums for
50	school district capital outlay projects; revising programs
51	the funds of which must meet the construction cost
52	maximums; amending ss. 110.1228, 402.22, 1004.75, 1010.20,
53	and 1012.44, F.S.; correcting cross-references; repealing
54	s. 1010.60, F.S., relating to State Board of Education
55	issuance of bonds; repealing s. 1010.61, F.S., relating to
56	State Board of Education powers for issuance of bonds;
57	repealing s. 1010.611, F.S., relating to resolution for
58	issuance of revenue certificates; repealing s. 1010.612,
59	F.S., relating to powers to secure revenue certificates;
60	repealing s. 1010.613, F.S., relating to remedies of any
61	holder of revenue certificates; repealing s. 1010.614,
62	F.S., relating to validity of revenue certificates;
63	repealing s. 1010.615, F.S., relating to prohibitions
64	against obligating the state; repealing s. 1010.616, F.S.,
65	relating to revenue certificate obligations of the State
66	Board of Education; repealing s. 1010.617, F.S., relating
67	to tax exemption and eligibility as legal investments;
68	repealing s. 1010.618, F.S., relating to the supplemental
69	nature of provisions relating to bonding; repealing s.
70	1010.619, F.S., relating to the Board of Administration
71	acting as fiscal agent; repealing s. 1012.74, F.S.,
72	relating to Florida educators professional liability
73	insurance protection; providing an effective date.
74
75	Be It Enacted by the Legislature of the State of Florida:
76
77	Section 1.  Paragraph (c) of subsection (2) of section
78	551.106, Florida Statutes, is amended to read:
79	551.106  License fee; tax rate; penalties.--
80	(2)  TAX ON SLOT MACHINE REVENUES.--
81	(c)1.  Funds transferred to the Educational Enhancement
82	Trust Fund under paragraph (b) shall be used to supplement
83	public education funding statewide and shall not be used for
84	recurring appropriations.
85	2.  If necessary to comply with any covenant established
86	pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
87	funds transferred to the Educational Enhancement Trust Fund
88	under paragraph (b) shall first be available to pay debt service
89	on lottery bonds issued to fund school construction in the event
90	lottery revenues are insufficient for such purpose or to satisfy
91	debt service reserve requirements established in connection with
92	lottery bonds. Moneys available pursuant to this subparagraph
93	are subject to annual appropriation by the Legislature.
94	Section 2.  Paragraph (a) of subsection (2) of section
95	1001.451, Florida Statutes, is amended to read:
96	1001.451  Regional consortium service organizations.--In
97	order to provide a full range of programs to larger numbers of
98	students, minimize duplication of services, and encourage the
99	development of new programs and services:
100	(2)(a)  Each regional consortium service organization that
101	consists of four or more school districts is eligible to
102	receive, through the Department of Education, an incentive grant
103	of $50,000 per school district and eligible member to be used
104	for the delivery of services within the participating school
105	districts. The determination of services and use of such funds
106	shall be established by the board of directors of the regional
107	consortium service organization. The funds shall be distributed
108	to each regional consortium service organization no later than
109	30 days following the release of the funds to the department.
110	Section 3.  Paragraph (d) is added to subsection (3) of
111	section 1002.71, Florida Statutes, to read:
112	1002.71  Funding; financial and attendance reporting.--
113	(3)
114	(d)  For programs offered by school districts pursuant to
115	s. 1002.61, each district's funding shall be based on a full-
116	time equivalent student enrollment that is evenly divisible by
117	10. If the result of dividing a district's full-time equivalent
118	student enrollment by 10 is not a whole number, the district's
119	enrollment calculation shall be adjusted by adding the minimum
120	number of full-time equivalent students to produce a full-time
121	equivalent student enrollment calculation that is evenly
122	divisible by 10.
123	Section 4.  Subsection (2) of section 1009.535, Florida
124	Statutes, is amended to read:
125	1009.535  Florida Medallion Scholars award.--
126	(2)  A Florida Medallion Scholar is eligible for an award
127	equal to the amount required to pay 75 percent of tuition and
128	fees, if the student is enrolled in a state university or a
129	baccalaureate degree program authorized pursuant to s. 1007.33.
130	A Florida Medallion Scholar is eligible for an award equal to
131	the amount required to pay 100 percent of tuition and fees for
132	college credit courses leading to an associate degree if the
133	student is enrolled in a community college public postsecondary
134	education institution. A student who is enrolled in a nonpublic
135	postsecondary education institution is eligible for an award
136	equal to the amount that would be required to pay 75 percent of
137	the tuition and fees of a public postsecondary education
138	institution at the comparable level.
139	Section 5.  Section 1010.62, Florida Statutes, is created
140	to read:
141	1010.62  Revenue bonds and debt.--
142	(1)  As used in this section, the term:
143	(a)  "Capital outlay project" means:
144	1.  Any project to acquire, construct, improve, or change
145	the functional use of land, buildings, and other facilities,
146	including furniture and equipment necessary to operate a new or
147	improved building or facility.
148	2.  Any other acquisition of equipment or software.
149	(b)  "Debt" means bonds, except revenue bonds as defined in
150	paragraph (d), loans, promissory notes, lease-purchase
151	agreements, certificates of participation, installment sales,
152	leases, or any other financing mechanism or financial
153	arrangement, whether or not a debt for legal purposes, for
154	financing or refinancing for or on behalf of a state university
155	or a direct-support organization or for the acquisition,
156	construction, improvement, or purchase of capital outlay
157	projects.
158	(c)  "Direct-support organization" means an organization
159	created pursuant to s. 1004.28 or any entity specifically
160	established to incur debt.
161	(d)  "Revenue bonds" means any obligation that constitutes
162	a revenue bond pursuant to s. 11(d), Art. VII of the State
163	Constitution.
164	(2)(a)  The Board of Governors may request the issuance of
165	revenue bonds pursuant to the State Bond Act and s. 11(d), Art.
166	VII of the State Constitution to finance or refinance capital
167	outlay projects permitted by law. Revenue bonds may be secured
168	by or payable only from those revenues authorized for such
169	purpose, including the Capital Improvement Trust Fund fee, the
170	building fee, the health fee, the transportation access fee,
171	hospital revenues, or those revenues derived from or received in
172	relation to sales and services of auxiliary enterprises or
173	component units of the university, including, but not limited
174	to, housing, transportation, health care, research or research-
175	related activities, food service, retail sales, athletic
176	activities, or other similar services, other revenues
177	attributable to the projects to be financed or refinanced, any
178	other revenue approved by the Legislature for facilities
179	construction or for securing revenue bonds issued pursuant to s.
180	11(d), Art. VII of the State Constitution, or any other revenues
181	permitted by law. Revenues from the activity and service fee and
182	the athletic fee may be used to pay and secure revenue bonds
183	except that the annual debt service shall not exceed an amount
184	equal to 5 percent of the fees collected during the most recent
185	12 consecutive months for which collection information is
186	available prior to the sale of the bonds. The assets of a
187	university foundation and the earnings thereon may also be used
188	to pay and secure revenue bonds of the university or its direct-
189	support organizations. Revenues from royalties and licensing
190	fees may also be used to pay and secure revenue bonds so long as
191	the facilities being financed are functionally related to the
192	university operation or direct-support organization reporting
193	such royalties and licensing fees. Revenue bonds may not be
194	secured by or be payable from, directly or indirectly, tuition,
195	the financial aid fee, sales and services of educational
196	departments, revenues from grants and contracts, except for
197	money received for overhead and indirect costs and other moneys
198	not required for the payment of direct costs, or any other
199	operating revenues of a state university. Revenues from one
200	auxiliary enterprise may not be used to secure revenue bonds of
201	another unless the Board of Governors, after review and
202	analysis, determines that the facilities being financed are
203	functionally related to the auxiliary enterprise revenues being
204	used to secure such revenue bonds.
205	(b)  In connection with the issuance of revenue bonds, the
206	Board of Governors, and the state university if so designated by
207	the Board of Governors, shall comply with all covenants,
208	commitments, or other provisions relating to the revenue bonds.
209	Such covenants, commitments, or other provisions, in addition to
210	those provided in the State Bond Act, may relate to:
211	1.  Pledging the fees, charges, and other revenues that
212	secure the revenue bonds;
213	2.  Fixing and maintaining fees, rates, and other charges
214	pledged to the payment of the revenue bonds;
215	3.  Providing a lien on the revenues pledged;
216	4.  Preventing or providing for the creation of other liens
217	on the fees, charges, and other revenues that secure the revenue
218	bonds;
219	5.  Establishing and maintaining reserves for debt service
220	payments on revenue bonds;
221	6.  Providing for the operation, maintenance, and
222	improvement of facilities that are related to the generation of
223	the fees, revenues, and other charges pledged to the payment of
224	the revenue bonds; and
225	7.  Establishing any other covenants, commitments, or
226	provisions that are deemed necessary or advisable to enhance the
227	security of the revenue bonds, or the marketability thereof, and
228	that are customary in accordance with the market requirements
229	for the sale of such revenue bonds.
230	(c)  Revenue bonds issued pursuant to this subsection are
231	not required to be validated pursuant to chapter 75.
232	(3)(a)  A state university or direct-support organization
233	may not issue debt without the approval of the Board of
234	Governors. The Board of Governors may approve the issuance of
235	debt by a state university or a direct-support organization only
236	when such debt is used to finance or refinance capital outlay
237	projects. The debt may be secured by or payable only from those
238	revenues authorized for such purpose, including the health fee,
239	the transportation access fee, hospital revenues, or those
240	revenues derived from or received in relation to sales and
241	services of auxiliary enterprises or component units of the
242	university, including, but not limited to, housing,
243	transportation, health care, research or research-related
244	activities, food service, retail sales, athletic activities, or
245	other similar services. Revenues derived from the activity and
246	service fee and the athletic fee may be used to pay and secure
247	debt except that the annual debt service shall not exceed an
248	amount equal to 5 percent of the fees collected during the most
249	recent 12 consecutive months for which collection information is
250	available prior to incurring the debt. The assets of university
251	foundations and the earnings thereon may be used to pay and
252	secure debt of the university or its direct-support
253	organizations. Gifts and donations or pledges of gifts may also
254	be used to secure debt so long as the maturity of the debt,
255	including extensions, renewals, and refundings, does not exceed
256	5 years. Revenues from royalties and licensing fees may also be
257	used to secure debt so long as the facilities being financed are
258	functionally related to the university operation or direct-
259	support organization reporting such royalties and licensing
260	fees. The debt may not be secured by or be payable from,
261	directly or indirectly, tuition, the financial aid fee, sales
262	and services of educational departments, revenues from grants
263	and contracts, except for money received for overhead and
264	indirect costs and other moneys not required for the payment of
265	direct costs of grants, or any other operating revenues of a
266	state university. The debt of direct-support organizations may
267	not be secured by or be payable under an agreement or contract
268	with a state university unless the source of payments under such
269	agreement or contract is limited to revenues that universities
270	are authorized to use for payment of debt service. Revenues from
271	one auxiliary enterprise may not be used to secure debt of
272	another unless the Board of Governors, after review and
273	analysis, determines that the facilities being financed are
274	functionally related to the auxiliary enterprise revenues being
275	used to secure such debt. Debt may not be approved to finance or
276	refinance operating expenses of a state university or a direct-
277	support organization. The maturity of debt used to finance or
278	refinance the acquisition of equipment or software, including
279	any extensions, renewals, or refundings thereof, shall be
280	limited to 5 years or the estimated useful life of the equipment
281	or software, whichever is shorter. The Board of Governors may
282	establish conditions and limitations on such debt as it
283	determines to be advisable.
284	(b)  Approval by the Board of Governors of the issuance of
285	debt shall be based upon a determination that the debt:
286	1.  Is for a purpose consistent with the mission of the
287	state university;
288	2.  Is structured in a manner appropriate for the prudent
289	financial management of the state university;
290	3.  Is secured by revenues adequate to provide for all
291	payments relating to the debt;
292	4.  Has been analyzed by the Division of Bond Finance and
293	issues raised by such analysis have been appropriately
294	considered by the Board of Governors; and
295	5.  Is consistent with the requirements of any policies or
296	criteria adopted by the Board of Governors for the approval of
297	debt.
298	(c)  Notwithstanding paragraphs (a) and (b), state
299	universities and direct-support organizations may engage in the
300	following activities without the approval of the Board of
301	Governors:
302	1.  State universities may lease-purchase equipment and
303	software in accordance with the deferred-purchase provisions in
304	chapter 287 and direct-support organizations may lease-purchase
305	equipment and software to the extent that the overall term of
306	the financing, including any extension, renewal, or refinancing
307	thereof, does not exceed 5 years or the estimated useful life of
308	the equipment or software, whichever is shorter;
309	2.  Direct-support organizations may issue promissory notes
310	and grant conventional mortgages for the acquisition of real
311	property; and
312	3.  State universities and direct-support organizations may
313	secure debt with gifts and donations and pledges of gifts so
314	long as the facilities being financed thereby have been included
315	in the university's 5-year capital improvement plan that has
316	been approved by the Board of Governors and the maturity of the
317	debt, including any extension, renewal, or refunding, does not
318	exceed 5 years.
319	(4)  The approval by the Board of Governors of revenue
320	bonds, except refunding bonds, or debt must be requested by a
321	resolution of the board of trustees of each state university
322	involved in the issuance of the revenue bonds or debt.
323	(5)  Revenue bonds or debt issued under this section may be
324	secured on a parity with prior revenue bonds or debt issued by
325	or on behalf of one or more universities or a direct-support
326	organization.
327	(6)  Capital outlay projects to be financed by revenue
328	bonds or debt are limited to those approved by the Legislature
329	through approval of the specific project or general approval of
330	the type or category of capital outlay project.
331	(7)(a)  As required pursuant to s. 11(d), Art. VII of the
332	State Constitution and subsection (6), the Legislature approves
333	capital outlay projects meeting the following requirements:
334	1.  The project is located on a campus of a state
335	university or on land leased to the university or is used for
336	activities relating to the state university;
337	2.  The project is included in the master plan of the state
338	university or is for facilities that are not required to be in a
339	university's master plan;
340	3.  The project is approved by the Board of Governors as
341	being consistent with the strategic plan of the state university
342	and the programs offered by the state university; and
343	4.  The project is for purposes relating to the housing,
344	transportation, health care, research or research-related
345	activities, food service, retail sales, or student activities of
346	the state university.
347	(b)  Capital outlay projects for the acquisition of
348	equipment or software are also approved for purposes of
349	subsection (6) to the extent that the overall term of the
350	financing, including any extension, renewal, or refinancing
351	thereof, does not exceed 5 years or the estimated useful life of
352	the equipment or software, whichever is shorter.
353	(8)  Notwithstanding any other law, the Board of Governors,
354	each state university, and any direct-support organization must
355	comply with the provisions of this section in order to issue or
356	enter into agreements for the issuance of revenue bonds or debt.
357	(9)  The Board of Governors may adopt such policies as may
358	be necessary or desirable for carrying out all of the
359	requirements of this section and may do all things necessary or
360	desirable to carry out the powers granted under this section.
361	Such policies may include categories of debt, other than revenue
362	bonds, which may be issued without approval of the specific
363	issuance by the Board of Governors if the issuance complies with
364	any terms, conditions, or requirements included in such policy
365	and laws governing the imposition of fees and laws requiring
366	specific authority to pledge revenues to secure debt.
367	(10)  Any legal commitments, contracts, or other
368	obligations relating to the financing of capital outlay projects
369	that were lawfully entered into before the effective date of
370	this section shall remain in full force and effect. Any such
371	legal commitment, contract, or other obligation may be amended
372	without compliance with this section, but only to the extent
373	that such amendment does not increase the financial obligation
374	of the Board of Governors, a state university, or a direct-
375	support organization.
376	Section 6.  Paragraphs (d) and (f) of subsection (1) and
377	paragraphs (a) and (b) of subsection (4) of section 1011.62,
378	Florida Statutes, are amended, paragraphs (o), (p), (q), and (r)
379	of subsection (1) are redesignated as paragraphs (q), (r), (s),
380	and (t), respectively, and new paragraphs (o) and (p) are added
381	to that subsection, subsections (5), (6), and (7) are renumbered
382	as subsections (6), (7), and (8), respectively, present
383	subsections (8) and (9) are renumbered as subsections (9) and
384	(10), respectively, and amended, and a new subsection (5) is
385	added to that section, to read:
386	1011.62  Funds for operation of schools.--If the annual
387	allocation from the Florida Education Finance Program to each
388	district for operation of schools is not determined in the
389	annual appropriations act or the substantive bill implementing
390	the annual appropriations act, it shall be determined as
391	follows:
392	(1)  COMPUTATION OF THE BASIC AMOUNT TO BE INCLUDED FOR
393	OPERATION.--The following procedure shall be followed in
394	determining the annual allocation to each district for
395	operation:
396	(d)  Annual allocation calculation.--
397	1.  The Department of Education is authorized and directed
398	to review all district programs and enrollment projections and
399	calculate a maximum total weighted full-time equivalent student
400	enrollment for each district for the K-12 FEFP.
401	2.  Maximum enrollments calculated by the department shall
402	be derived from enrollment estimates used by the Legislature to
403	calculate the FEFP. If two or more districts enter into an
404	agreement under the provisions of s. 1001.42(4)(d), after the
405	final enrollment estimate is agreed upon, the amount of FTE
406	specified in the agreement, not to exceed the estimate for the
407	specific program as identified in paragraph (c), may be
408	transferred from the participating districts to the district
409	providing the program.
410	3.  As part of its calculation of each district's maximum
411	total weighted full-time equivalent student enrollment, the
412	department shall establish separate enrollment ceilings for each
413	of two program groups. Group 1 shall be composed of basic
414	programs for grades K-3, grades 4-8, and grades 9-12. Group 2
415	shall be composed of students in exceptional student education
416	programs support levels IV and V, English for Speakers of Other
417	Languages programs, and all career programs in grades 9-12 7-12.
418	a.  For any calculation of the FEFP, the enrollment ceiling
419	for group 1 shall be calculated by multiplying the actual
420	enrollment for each program in the program group by its
421	appropriate program weight.
422	b.a.  The weighted enrollment ceiling for group 2 programs
423	shall be calculated by multiplying the final enrollment
424	conference estimate for each program by the appropriate program
425	weight as provided in the General Appropriations Act. The
426	weighted enrollment ceiling for program group 2 shall be the sum
427	of the weighted enrollment ceilings for each program in the
428	program group, plus the increase in weighted full-time
429	equivalent student membership from the prior year for clients of
430	the Department of Children and Family Services and the
431	Department of Juvenile Justice.
432	c.b.  If, for any calculation of the FEFP, the weighted
433	enrollment for program group 2, derived by multiplying actual
434	enrollments by appropriate program weights, exceeds the
435	enrollment ceiling for that group, the following procedure shall
436	be followed to reduce the weighted enrollment for that group to
437	equal the enrollment ceiling:
438	(I)  The weighted enrollment ceiling for each program in
439	the program group shall be subtracted from the weighted
440	enrollment for that program derived from actual enrollments.
441	(II)  If the difference calculated under sub-sub-
442	subparagraph (I) is greater than zero for any program, a
443	reduction proportion shall be computed for the program by
444	dividing the absolute value of the difference by the total
445	amount by which the weighted enrollment for the program group
446	exceeds the weighted enrollment ceiling for the program group.
447	(III)  The reduction proportion calculated under sub-sub-
448	subparagraph (II) shall be multiplied by the total amount of the
449	program group's enrollment over the ceiling as calculated under
450	sub-sub-subparagraph (I).
451	(IV)  The prorated reduction amount calculated under sub-
452	sub-subparagraph (III) shall be subtracted from the program's
453	weighted enrollment to produce a revised program weighted
454	enrollment. For any calculation of the FEFP, the enrollment
455	ceiling for group 1 shall be calculated by multiplying the
456	actual enrollment for each program in the program group by its
457	appropriate program weight.
458	(V)  The prorated reduction amount calculated under sub-
459	sub-subparagraph (III) shall be divided by the appropriate
460	program weight and the result shall be added to the revised
461	program weighted enrollment computed in sub-sub-subparagraph
462	(IV).
463	c.  For program group 2, the weighted enrollment ceiling
464	shall be a number not less than the sum obtained by:
465	(I)  Multiplying the sum of reported FTE for all programs
466	in the program group that have a cost factor of 1.0 or more by
467	1.0, and
468	(II)  By adding this number to the sum obtained by
469	multiplying the projected FTE for all programs with a cost
470	factor less than 1.0 by the actual cost factor.
471	4.  Following completion of the weighted enrollment ceiling
472	calculation as provided in subparagraph 3., a supplemental
473	capping calculation shall be employed for those districts that
474	are over their weighted enrollment ceiling. For each such
475	district, the total reported unweighted FTE enrollment for group
476	2 programs shall be compared with the total appropriated
477	unweighted FTE enrollment for group 2 programs. If the total
478	reported unweighted FTE for group 2 is greater than the
479	appropriated unweighted FTE, then the excess unweighted FTE up
480	to the unweighted FTE transferred from group 2 to group 1 for
481	each district by the Public School FTE Estimating Conference
482	shall be funded at a weight of 1.0 and added to the funded
483	weighted FTE computed in subparagraph 3.
484	(f)  Supplemental academic instruction; categorical fund.--
485	1.  There is created a categorical fund to provide
486	supplemental academic instruction to students in kindergarten
487	through grade 12. This paragraph may be cited as the
488	"Supplemental Academic Instruction Categorical Fund."
489	2.  Categorical funds for supplemental academic instruction
490	shall be allocated annually to each school district in the
491	amount provided in the General Appropriations Act. These funds
492	shall be in addition to the funds appropriated on the basis of
493	FTE student membership in the Florida Education Finance Program
494	and shall be included in the total potential funds of each
495	district. These funds shall be used to provide supplemental
496	academic instruction to students enrolled in the K-12 program.
497	Supplemental instruction strategies may include, but are not
498	limited to: modified curriculum, reading instruction, after-
499	school instruction, tutoring, mentoring, class size reduction,
500	extended school year, intensive skills development in summer
501	school, and other methods for improving student achievement.
502	Supplemental instruction may be provided to a student in any
503	manner and at any time during or beyond the regular 180-day term
504	identified by the school as being the most effective and
505	efficient way to best help that student progress from grade to
506	grade and to graduate.
507	3.  Effective with the 1999-2000 fiscal year, funding on
508	the basis of FTE membership beyond the 180-day regular term
509	shall be provided in the FEFP only for students enrolled in
510	juvenile justice education programs or in education programs for
511	juveniles placed in secure facilities or programs under s.
512	985.223. Funding for instruction beyond the regular 180-day
513	school year for all other K-12 students shall be provided
514	through the supplemental academic instruction categorical fund
515	and other state, federal, and local fund sources with ample
516	flexibility for schools to provide supplemental instruction to
517	assist students in progressing from grade to grade and
518	graduating.
519	4.  The Florida State University School, as a lab school,
520	is authorized to expend from its FEFP or Lottery Enhancement
521	Trust Fund allocation the cost to the student of remediation in
522	reading, writing, or mathematics for any graduate who requires
523	remediation at a postsecondary educational institution.
524	5.  Beginning in the 1999-2000 school year, dropout
525	prevention programs as defined in ss. 1003.52, 1003.53(1)(a),
526	(b), and (c), and 1003.54 shall be included in group 1 programs
527	under subparagraph (d)3.
528	(o)  Calculation of additional full-time equivalent
529	membership based on completion of high school level algebra
530	courses by students in grades 6 through 8.--A value of 0.088
531	full-time equivalent student membership shall be calculated for
532	each student in grades 6 through 8 who completes a high school
533	level algebra course and receives a grade of C or better. Such
534	value shall be added to the total full-time equivalent student
535	membership in basic programs for grades 6 through 8. Each
536	district must allocate the funds provided to the district for
537	students in grades 6 through 8 who complete a high school level
538	algebra course and receive a grade of C or better to the school
539	that generated the funds.
540	(p)  Calculation of additional full-time equivalent
541	membership for the Florida Virtual School.--The total reported
542	full-time equivalent student membership for the Florida Virtual
543	School shall be multiplied by 0.114 and such value shall be
544	added to the total full-time equivalent student membership.
545	(4)  COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The
546	Legislature shall prescribe the aggregate required local effort
547	for all school districts collectively as an item in the General
548	Appropriations Act for each fiscal year. The amount that each
549	district shall provide annually toward the cost of the Florida
550	Education Finance Program for kindergarten through grade 12
551	programs shall be calculated as follows:
552	(a)  Estimated taxable value calculations.--
553	1.a.  Not later than 2 working days prior to July 19, the
554	Department of Revenue shall certify to the Commissioner of
555	Education its most recent estimate of the taxable value for
556	school purposes in each school district and the total for all
557	school districts in the state for the current calendar year
558	based on the latest available data obtained from the local
559	property appraisers. Not later than July 19, the Commissioner of
560	Education shall compute a millage rate, rounded to the next
561	highest one one-thousandth of a mill, which, when applied to 95
562	percent of the estimated state total taxable value for school
563	purposes, would generate the prescribed aggregate required local
564	effort for that year for all districts. The Commissioner of
565	Education shall certify to each district school board the
566	millage rate, computed as prescribed in this subparagraph, as
567	the minimum millage rate necessary to provide the district
568	required local effort for that year.
569	b.  The General Appropriations Act shall direct the
570	computation of the statewide adjusted aggregate amount for
571	required local effort for all school districts collectively from
572	ad valorem taxes to ensure that no school district's revenue
573	from required local effort millage will produce more than 90
574	percent of the district's total Florida Education Finance
575	Program calculation, and the adjustment of the required local
576	effort millage rate of each district that produces more than 90
577	percent of its total Florida Education Finance Program
578	entitlement to a level that will produce only 90 percent of its
579	total Florida Education Finance Program entitlement in the July
580	calculation.
581	2.  As revised data are received from property appraisers,
582	the Department of Revenue shall amend the certification of the
583	estimate of the taxable value for school purposes. The
584	Commissioner of Education, in administering the provisions of
585	subparagraph (9)(a)2., shall use the most recent taxable value
586	for the appropriate year.
587	(b)  Final calculation.--
588	1.  On September 1 of each year, the Department of Revenue
589	shall, upon receipt of the official final assessed value of
590	property from each of the property appraisers, certify to the
591	Commissioner of Education the total of the prior year final
592	taxable value total for school purposes in each school district
593	and the total for all school districts in the state, subject to
594	the provisions of paragraph (d). The commissioner shall use the
595	official final taxable value certified on September 1 for school
596	purposes for each school district in the final calculation of
597	the annual Florida Education Finance Program allocations.
598	2.  For the purposes of this paragraph, the official final
599	taxable value for school purposes shall be the taxable value for
600	school purposes on which the tax bills are computed and mailed
601	to the taxpayers, adjusted to reflect final administrative
602	actions of value adjustment boards and judicial decisions
603	pursuant to part I of chapter 194. By September 1 of each year,
604	the Department of Revenue shall certify to the commissioner the
605	official prior year final taxable value for school purposes. For
606	each county that has not submitted a revised tax roll reflecting
607	final value adjustment board actions and final judicial
608	decisions, the Department of Revenue shall certify the most
609	recent revision of the official taxable value for school
610	purposes. The certified value certified on September 1 shall be
611	the final taxable value for school purposes for that year, and
612	no further adjustments shall be made, except those made pursuant
613	to paragraph (10)(b) subparagraph (9)(a)2.
614	(5)  DISCRETIONARY MILLAGE COMPRESSION SUPPLEMENT.--The
615	Legislature shall prescribe in the General Appropriations Act,
616	pursuant to s. 1011.71(1), the rate of nonvoted current
617	operating discretionary millage that shall be used to calculate
618	a discretionary millage compression supplement. If the
619	prescribed millage generates an amount of funds per unweighted
620	FTE for the district that is less than the state average, the
621	district shall receive an amount per FTE that, when added to the
622	funds per FTE generated by the designated levy, shall equal the
623	state average. To be eligible for the supplement, a district
624	must levy the maximum authorized millage pursuant to s. 1011.71.
625	(9)(8)  QUALITY ASSURANCE GUARANTEE.--The Legislature may
626	annually in the General Appropriations Act determine a
627	percentage increase in funds per K-12 unweighted FTE as a
628	minimum guarantee to each school district. The guarantee shall
629	be calculated from prior year base funding per unweighted FTE
630	student which shall include the adjusted FTE dollars as provided
631	in subsection (10) (9), quality guarantee funds, and actual
632	nonvoted discretionary local effort from taxes. From the base
633	funding per unweighted FTE, the increase shall be calculated for
634	the current year. The current year funds from which the
635	guarantee shall be determined shall include the adjusted FTE
636	dollars as provided in subsection (10) (9) and potential
637	nonvoted discretionary local effort from taxes. A comparison of
638	current year funds per unweighted FTE to prior year funds per
639	unweighted FTE shall be computed. For those school districts
640	which have less than the legislatively assigned percentage
641	increase, funds shall be provided to guarantee the assigned
642	percentage increase in funds per unweighted FTE student. Should
643	appropriated funds be less than the sum of this calculated
644	amount for all districts, the commissioner shall prorate each
645	district's allocation. This provision shall be implemented to
646	the extent specifically funded.
647	(10)(9)  TOTAL ALLOCATION OF STATE FUNDS TO EACH DISTRICT
648	FOR CURRENT OPERATION.--The total annual state allocation to
649	each district for current operation for the FEFP shall be
650	distributed periodically in the manner prescribed in the General
651	Appropriations Act.
652	(a)  The basic amount for current operation for the FEFP as
653	determined in subsection (1), multiplied by the district cost
654	differential factor as determined in subsection (2), plus the
655	amounts provided for categorical components within the FEFP,
656	plus the discretionary millage compression supplement as
657	determined in subsection (5), the amount for the sparsity
658	supplement as determined in subsection (7) (6), the decline in
659	full-time equivalent students as determined in subsection (8)
660	(7), and the quality assurance guarantee as determined in
661	subsection (9) (8), less the required local effort as determined
662	in subsection (4). If the funds appropriated for the purpose of
663	funding the total amount for current operation as provided in
664	this paragraph are not sufficient to pay the state requirement
665	in full, the department shall prorate the available state funds
666	to each district in the following manner:
667	1.  Determine the percentage of proration by dividing the
668	sum of the total amount for current operation, as provided in
669	this paragraph for all districts collectively, and the total
670	district required local effort into the sum of the state funds
671	available for current operation and the total district required
672	local effort.
673	2.  Multiply the percentage so determined by the sum of the
674	total amount for current operation as provided in this paragraph
675	and the required local effort for each individual district.
676	3.  From the product of such multiplication, subtract the
677	required local effort of each district; and the remainder shall
678	be the amount of state funds allocated to the district for
679	current operation.
680	(b)  The amount thus obtained shall be the net annual
681	allocation to each school district. However, if it is determined
682	that any school district received an underallocation or
683	overallocation for any prior year because of an arithmetical
684	error, assessment roll change required by final judicial
685	decision, full-time equivalent student membership error, or any
686	allocation error revealed in an audit report, the allocation to
687	that district shall be appropriately adjusted. Beginning with
688	audits for the 2001-2002 fiscal year, if the adjustment is the
689	result of an audit finding in which group 2 FTE are reclassified
690	to the basic program and the district weighted FTE are over the
691	weighted enrollment ceiling for group 2 programs, the adjustment
692	shall not result in a gain of state funds to the district. If
693	the Department of Education audit adjustment recommendation is
694	based upon controverted findings of fact, the Commissioner of
695	Education is authorized to establish the amount of the
696	adjustment based on the best interests of the state.
697	(c)  The amount thus obtained shall represent the net
698	annual state allocation to each district; however,
699	notwithstanding any of the provisions herein, each district
700	shall be guaranteed a minimum level of funding in the amount and
701	manner prescribed in the General Appropriations Act.
702	Section 7.  Subsection (1) of section 1011.71, Florida
703	Statutes, is amended to read:
704	1011.71  District school tax.--
705	(1)  If the district school tax is not provided in the
706	General Appropriations Act or the substantive bill implementing
707	the General Appropriations Act, each district school board
708	desiring to participate in the state allocation of funds for
709	current operation as prescribed by s. 1011.62(10)(9) shall levy
710	on the taxable value for school purposes of the district,
711	exclusive of millage voted under the provisions of s. 9(b) or s.
712	12, Art. VII of the State Constitution, a millage rate not to
713	exceed the amount certified by the commissioner as the minimum
714	millage rate necessary to provide the district required local
715	effort for the current year, pursuant to s. 1011.62(4)(a)1. In
716	addition to the required local effort millage levy, each
717	district school board may levy a nonvoted current operating
718	discretionary millage. The Legislature shall prescribe annually
719	in the appropriations act the maximum amount of millage a
720	district may levy. The millage rate prescribed shall exceed zero
721	mills but shall not exceed the lesser of 1.6 mills or 25 percent
722	of the millage which is required pursuant to s. 1011.62(4),
723	exclusive of millage levied pursuant to subsection (2).
724	Section 8.  Subsections (1) and (7) of section 1013.62,
725	Florida Statutes, are amended to read:
726	1013.62  Charter schools capital outlay funding.--
727	(1)  In each year in which funds are appropriated for
728	charter school capital outlay purposes, the Commissioner of
729	Education shall allocate the funds among eligible charter
730	schools. To be eligible for a funding allocation, a charter
731	school must:
732	(a)1.  Have been in operation for 3 or more years;
733	2.  Be an expanded feeder chain of a charter school within
734	the same school district that is currently receiving charter
735	school capital outlay funds; or
736	3.  Have been accredited by the Commission on Schools of
737	the Southern Association of Colleges and Schools.
738	(b)  Have financial stability for future operation as a
739	charter school.
740	(c)  Have satisfactory student achievement based on state
741	accountability standards applicable to the charter school.
742	(d)  Have received final approval from its sponsor pursuant
743	to s. 1002.33 for operation during that fiscal year.
744	(e)  Serve students in facilities that are not provided by
745	the charter school's sponsor.
746
747	The first priority for charter school capital outlay funding
748	shall be to allocate to the charter schools that received
749	funding in the 2005-2006 fiscal year an allocation of the same
750	amount per capital outlay full-time equivalent student up to the
751	lesser of the actual number of capital outlay full-time
752	equivalent students in the current year or the capital outlay
753	full-time equivalent students in the 2005-2006 fiscal year.
754	After calculating the first priority, the second priority shall
755	be to allocate excess funds remaining in the appropriation in an
756	amount equal to the per capital outlay full-time equivalent
757	student amount in the first priority calculation to eligible
758	charter schools not included in the first priority calculation
759	and to schools in the first priority calculation with growth in
760	excess of the 2005-2006 capital outlay full-time equivalent
761	students. After calculating the first and second priorities,
762	excess funds remaining in the appropriation shall be allocated
763	to all eligible charter schools. A charter school's allocation
764	shall not exceed one-fifteenth of the cost per student station
765	specified in s. 1013.64(6)(b). Prior to the release of capital
766	outlay funds to a school district on behalf of the charter
767	school, the Department of Education shall ensure that the
768	district school board and the charter school governing board
769	enter into a written agreement that includes provisions for the
770	reversion of any unencumbered funds and all equipment and
771	property purchased with public education funds to the ownership
772	of the district school board, as provided for in subsection (3),
773	in the event that the school terminates operations. Any funds
774	recovered by the state shall be deposited in the General Revenue
775	Fund. A charter school is not eligible for a funding allocation
776	if it was created by the conversion of a public school and
777	operates in facilities provided by the charter school's sponsor
778	for a nominal fee or at no charge or if it is directly or
779	indirectly operated by the school district. Unless otherwise
780	provided in the General Appropriations Act, the funding
781	allocation for each eligible charter school shall be determined
782	by multiplying the school's projected student enrollment by one-
783	fifteenth of the cost-per-student station specified in s.
784	1013.64(6)(b) for an elementary, middle, or high school, as
785	appropriate. If the funds appropriated are not sufficient, the
786	commissioner shall prorate the available funds among eligible
787	charter schools. However, no charter school or charter lab
788	school shall receive state charter school capital outlay funds
789	in excess of the one-fifteenth cost per student station formula
790	if the charter school's combination of state charter school
791	capital outlay funds, capital outlay funds calculated through
792	the reduction in the administrative fee provided in s.
793	1002.33(20), and capital outlay funds allowed in s.
794	1002.32(9)(e) and (h) exceeds the one-fifteenth cost per student
795	station formula. Funds shall be distributed on the basis of the
796	capital outlay full-time equivalent membership by grade level,
797	which shall be calculated by averaging the results of the second
798	and third enrollment surveys. The Department of Education shall
799	distribute capital outlay funds monthly, beginning in the first
800	quarter of the fiscal year, based on one-twelfth of the amount
801	the department reasonably expects the charter school to receive
802	during that fiscal year. The commissioner shall adjust
803	subsequent distributions as necessary to reflect each charter
804	school's actual student enrollment as reflected in the second
805	and third enrollment surveys. The commissioner shall establish
806	the intervals and procedures for determining the projected and
807	actual student enrollment of eligible charter schools.
808	(7)  Notwithstanding the provisions of this section,
809	beginning in the 2003-2004 fiscal year:
810	(a)  If the appropriation for charter school capital outlay
811	funds is no greater than the 2002-2003 appropriation, the funds
812	shall be allocated according to the formula outlined in
813	subsection (1) to:
814	1.  The same schools that received funding in 2002-2003.
815	2.  Schools that are an expanded feeder pattern of schools
816	that received funding in 2002-2003.
817	3.  Schools that have an approved charter and are serving
818	students at the start of the 2003-2004 school year and either
819	incurred long-term financial obligations prior to January 31,
820	2003, or began construction on educational facilities prior to
821	December 31, 2002.
822	(b)  If the appropriation for charter school capital outlay
823	funds is less than the 2002-2003 appropriation, the funds shall
824	be prorated among the schools eligible in paragraph (a).
825	(c)  If the appropriation for charter school capital outlay
826	funds is greater than the 2002-2003 appropriation, the amount of
827	funds provided in the 2002-2003 appropriation shall be allocated
828	according to paragraph (a). First priority for allocating the
829	amount in excess of the 2002-2003 appropriation shall be to
830	prorate the excess funds among the charter schools with long-
831	term debt or long-term lease to the extent that the initial
832	allocation is insufficient to provide one-fifteenth of the cost
833	per student station specified in s. 1013.64(6)(b), and second
834	priority shall be to other eligible charter schools.
835	Section 9.  Paragraph (b) of subsection (6) of section
836	1013.64, Florida Statutes, is amended to read:
837	1013.64  Funds for comprehensive educational plant needs;
838	construction cost maximums for school district capital
839	projects.--Allocations from the Public Education Capital Outlay
840	and Debt Service Trust Fund to the various boards for capital
841	outlay projects shall be determined as follows:
842	(6)
843	(b)1.  A district school board, including a district school
844	board of an academic performance-based charter school district,
845	must not use funds from the following sources: Public Education
846	Capital Outlay and Debt Service Trust Fund; School District and
847	Community College District Capital Outlay and Debt Service Trust
848	Fund; Classrooms First Program funds provided in s. 1013.68;
849	effort index grant funds provided in s. 1013.73; nonvoted 2-mill
850	levy of ad valorem property taxes provided in s. 1011.71(2);
851	Classrooms for Kids Infrastructure Program funds provided in s.
852	1013.735; or District Effort Recognition Program funds provided
853	in s. 1013.736; or High Growth District Capital Outlay
854	Assistance Grant Program funds provided in s. 1013.738 for any
855	new construction of educational plant space with a total cost
856	per student station, including change orders, that equals more
857	than:
858	a.  $17,952 $12,755 for an elementary school,
859	b.  $19,386 $14,624 for a middle school, or
860	c.  $25,181 $19,352 for a high school,
861
862	(January 2006 2002) as adjusted annually to reflect increases or
863	decreases in the Consumer Price Index.
864	2.  A district school board must not use funds from the
865	Public Education Capital Outlay and Debt Service Trust Fund or
866	the School District and Community College District Capital
867	Outlay and Debt Service Trust Fund for any new construction of
868	an ancillary plant that exceeds 70 percent of the average cost
869	per square foot of new construction for all schools.
870	Section 10.  Paragraph (a) of subsection (1) of section
871	110.1228, Florida Statutes, is amended to read:
872	110.1228  Participation by small counties, small
873	municipalities, and district school boards located in small
874	counties.--
875	(1)  As used in this section, the term:
876	(a)  "District school board" means a district school board
877	located in a small county or a district school board that
878	receives funding pursuant to s. 1011.62(7)(6).
879	Section 11.  Subsection (7) of section 402.22, Florida
880	Statutes, is amended to read:
881	402.22  Education program for students who reside in
882	residential care facilities operated by the Department of
883	Children and Family Services.--
884	(7)  Notwithstanding the provisions of s. 1001.42(4)(n),
885	the educational program at the Marianna Sunland Center in
886	Jackson County shall be operated by the Department of Education,
887	either directly or through grants or contractual agreements with
888	other public educational agencies. The annual state allocation
889	to any such agency shall be computed pursuant to s. 1011.62(1),
890	(2), and (6) (5) and allocated in the amount that would have
891	been provided the local school district in which the residential
892	facility is located.
893	Section 12.  Paragraph (a) of subsection (6) of section
894	1004.75, Florida Statutes, is amended to read:
895	1004.75  Training school consolidation pilot projects.--
896	(6)  FUNDING.--The Department of Education shall shift
897	funds generated by students in the pilot training centers
898	established by this section, including workforce development
899	recurring and nonrecurring funds, from the appropriate school
900	district to the respective community college. The community
901	college shall qualify for future facilities funding upon
902	transfer of the facility.
903	(a)  Consistent with s. 1011.62(8)(7), school districts
904	that transfer programs will receive an amount equal to 15
905	percent of the funding generated for the program under the FEFP
906	in 1996-1997.
907	Section 13.  Paragraph (a) of subsection (2) and paragraph
908	(b) of subsection (3) of section 1010.20, Florida Statutes, are
909	amended to read:
910	1010.20  Cost accounting and reporting for school
911	districts.--
912	(2)  COST REPORTING.--
913	(a)  Each district shall report on a district-aggregate
914	basis expenditures for inservice training pursuant to s.
915	1011.62(3) and for categorical programs as provided in s.
916	1011.62(6)(5).
917	(3)  PROGRAM EXPENDITURE REQUIREMENTS.--
918	(b)  Funds for inservice training established in s.
919	1011.62(3) and for categorical programs established in s.
920	1011.62(6)(5) shall be expended for the costs of the identified
921	programs as provided by law and in accordance with the rules of
922	the State Board of Education.
923	Section 14.  Section 1012.44, Florida Statutes, is amended
924	to read:
925	1012.44  Qualifications for certain persons providing
926	speech-language services.--The State Board of Education shall
927	adopt rules for speech-language services to school districts
928	that qualify for the sparsity supplement as described in s.
929	1011.62(7)(6). These services may be provided by baccalaureate
930	degree level persons for a period of 3 years. The rules shall
931	authorize the delivery of speech-language services by
932	baccalaureate degree level persons under the direction of a
933	certified speech-language pathologist with a master's degree or
934	higher. By October 1, 2003, these rules shall be reviewed by the
935	State Board of Education.
936	Section 15.  Sections 1010.60, 1010.61, 1010.611, 1010.612,
937	1010.613, 1010.614, 1010.615, 1010.616, 1010.617, 1010.618,
938	1010.619, and 1012.74, Florida Statutes, are repealed.
939	Section 16.  This act shall take effect July 1, 2006.

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