Florida Senate - 2009                       CS for CS for SB 278
       
       
       
       By the Committees on Education Pre-K - 12 Appropriations; and
       Education Pre-K - 12; and Senator Gaetz
       
       
       
       602-05110-09                                           2009278c2
    1                        A bill to be entitled                      
    2         An act relating to charter schools; amending ss.
    3         11.45, 218.39, 218.50, and 218.501, F.S., relating to
    4         audit reports by the Auditor General; conforming
    5         provisions to changes made by the act; amending ss.
    6         218.503 and 218.504, F.S.; providing that a charter
    7         technical career center is subject to certain
    8         requirements in a financial emergency; requiring that
    9         the sponsor be notified of certain conditions;
   10         providing for the development of a financial recovery
   11         plan, which may be approved by the Commissioner of
   12         Education; amending s. 1002.33, F.S.; providing for
   13         duties of a charter school sponsor and governing board
   14         if a charter school or charter technical career center
   15         experiences a deteriorating financial condition or is
   16         in a financial emergency; specifying forms to be used
   17         by a charter school applicant and sponsor; requiring
   18         applicant training and documentation; deleting
   19         requirements relating to auditing and being in a state
   20         of financial emergency; requiring charter schools to
   21         disclose the identity of relatives of charter school
   22         personnel; providing that the immediate termination of
   23         a charter is exempt from requirements for an informal
   24         hearing or for a hearing under ch. 120, F.S.;
   25         providing for the disclosure of the performance of a
   26         charter school that is not given a school grade or
   27         school improvement rating; revising the requirements
   28         for providing certain information to the public;
   29         providing reporting requirements; providing
   30         restrictions for the employment of relatives by
   31         charter school personnel; providing that members of a
   32         charter school governing board are subject to certain
   33         standards of conduct specified in ss. 112.313 and
   34         112.3143, F.S.; amending s. 1002.34, F.S.; providing
   35         additional duties for charter technical career
   36         centers, applicants, sponsors, and governing boards;
   37         requiring the Department of Education to offer or
   38         arrange training and assistance to applicants for a
   39         charter technical career center; requiring that an
   40         applicant participate in the training; creating s.
   41         1002.345, F.S.; establishing criteria and requirements
   42         for charter schools and charter technical career
   43         centers that have a deteriorating financial condition
   44         or are in a state of financial emergency; establishing
   45         requirements for charter schools, charter technical
   46         career centers, governing bodies, and sponsors;
   47         providing for corrective action and financial recovery
   48         plans; providing for duties of auditors, the
   49         Commissioner of Education, and the Department of
   50         Education; requiring the State Board of Education to
   51         adopt rules; providing grounds for termination or
   52         nonrenewal of a charter; providing an effective date.
   53  
   54  Be It Enacted by the Legislature of the State of Florida:
   55  
   56         Section 1. Paragraph (e) of subsection (7) and subsection
   57  (8) of section 11.45, Florida Statutes, are amended to read:
   58         11.45 Definitions; duties; authorities; reports; rules.—
   59         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   60         (e) The Auditor General shall notify the Governor or the
   61  Commissioner of Education, as appropriate, and the Legislative
   62  Auditing Committee of any audit report reviewed by the Auditor
   63  General pursuant to paragraph (b) which contains a statement
   64  that a local governmental entity, charter school, charter
   65  technical career center, or district school board has met one or
   66  more of the conditions specified in s. 218.503. If the Auditor
   67  General requests a clarification regarding information included
   68  in an audit report to determine whether a local governmental
   69  entity, charter school, charter technical career center, or
   70  district school board has met one or more of the conditions
   71  specified in s. 218.503, the requested clarification must be
   72  provided within 45 days after the date of the request. If the
   73  local governmental entity, charter school, charter technical
   74  career center, or district school board does not comply with the
   75  Auditor General’s request, the Auditor General shall notify the
   76  Legislative Auditing Committee. If, after obtaining the
   77  requested clarification, the Auditor General determines that the
   78  local governmental entity, charter school, charter technical
   79  career center, or district school board has met one or more of
   80  the conditions specified in s. 218.503, he or she shall notify
   81  the Governor or the Commissioner of Education, as appropriate,
   82  and the Legislative Auditing Committee.
   83         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
   84  consultation with the Board of Accountancy, shall adopt rules
   85  for the form and conduct of all financial audits performed by
   86  independent certified public accountants pursuant to ss.
   87  215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
   88  audits of local governmental entities, charter schools, charter
   89  technical career centers, and district school boards must
   90  include, but are not limited to, requirements for the reporting
   91  of information necessary to carry out the purposes of the Local
   92  Governmental Entity, Charter School, Charter Technical Career
   93  Center, and District School Board Financial Emergencies Act as
   94  stated in s. 218.501.
   95         Section 2. Subsection (5) of section 218.39, Florida
   96  Statutes, is amended to read:
   97         218.39 Annual financial audit reports.—
   98         (5) At the conclusion of the audit, the auditor shall
   99  discuss with the chair of each local governmental entity or the
  100  chair’s designee, or with the elected official of each county
  101  agency or with the elected official’s designee, or with the
  102  chair of the district school board or the chair’s designee, or
  103  with the chair of the board of the charter school or the chair’s
  104  designee, or with the chair of the charter technical career
  105  center or the chair’s designee, as appropriate, all of the
  106  auditor’s comments that will be included in the audit report. If
  107  the officer is not available to discuss the auditor’s comments,
  108  their discussion is presumed when the comments are delivered in
  109  writing to his or her office. The auditor shall notify each
  110  member of the governing body of a local governmental entity,
  111  district school board, or charter school, or charter technical
  112  career center for which deteriorating financial conditions exist
  113  that may cause a condition described in s. 218.503(1) to occur
  114  if actions are not taken to address such conditions.
  115         Section 3. Section 218.50, Florida Statutes, is amended to
  116  read:
  117         218.50 Short title.—Sections 218.50-218.504 may be cited as
  118  the “Local Governmental Entity, Charter School, Charter
  119  Technical Career Center, and District School Board Financial
  120  Emergencies Act.”
  121         Section 4. Section 218.501, Florida Statutes, is amended to
  122  read:
  123         218.501 Purposes.—The purposes of ss. 218.50-218.504 are:
  124         (1) To promote the fiscal responsibility of local
  125  governmental entities, charter schools, charter technical career
  126  centers, and district school boards.
  127         (2) To assist local governmental entities, charter schools,
  128  charter technical career centers, and district school boards in
  129  providing essential services without interruption and in meeting
  130  their financial obligations.
  131         (3) To assist local governmental entities, charter schools,
  132  charter technical career centers, and district school boards
  133  through the improvement of local financial management
  134  procedures.
  135         Section 5. Subsections (1), (2), (3), and (4) of section
  136  218.503, Florida Statutes, are amended to read:
  137         218.503 Determination of financial emergency.—
  138         (1) Local governmental entities, charter schools, charter
  139  technical career centers, and district school boards shall be
  140  subject to review and oversight by the Governor, the charter
  141  school sponsor, the charter technical career center sponsor, or
  142  the Commissioner of Education, as appropriate, when any one of
  143  the following conditions occurs:
  144         (a) Failure within the same fiscal year in which due to pay
  145  short-term loans or failure to make bond debt service or other
  146  long-term debt payments when due, as a result of a lack of
  147  funds.
  148         (b) Failure to pay uncontested claims from creditors within
  149  90 days after the claim is presented, as a result of a lack of
  150  funds.
  151         (c) Failure to transfer at the appropriate time, due to
  152  lack of funds:
  153         1. Taxes withheld on the income of employees; or
  154         2. Employer and employee contributions for:
  155         a. Federal social security; or
  156         b. Any pension, retirement, or benefit plan of an employee.
  157         (d) Failure for one pay period to pay, due to lack of
  158  funds:
  159         1. Wages and salaries owed to employees; or
  160         2. Retirement benefits owed to former employees.
  161         (e) An unreserved or total fund balance or retained
  162  earnings deficit, or unrestricted or total net assets deficit,
  163  as reported on the balance sheet or statement of net assets on
  164  the general purpose or fund financial statements, for which
  165  sufficient resources of the local governmental entity, charter
  166  school, charter technical career center, or district school
  167  board, as reported on the balance sheet or statement of net
  168  assets on the general purpose or fund financial statements, are
  169  not available to cover the deficit. Resources available to cover
  170  reported deficits include net assets that are not otherwise
  171  restricted by federal, state, or local laws, bond covenants,
  172  contractual agreements, or other legal constraints. Fixed or
  173  capital assets, the disposal of which would impair the ability
  174  of a local governmental entity, charter school, charter
  175  technical career center, or district school board to carry out
  176  its functions, are not considered resources available to cover
  177  reported deficits.
  178         (2) A local governmental entity shall notify the Governor
  179  and the Legislative Auditing Committee, a charter school shall
  180  notify the charter school sponsor, the Commissioner of
  181  Education, and the Legislative Auditing Committee, a charter
  182  technical career center shall notify the charter technical
  183  career center sponsor, the Commissioner of Education, and the
  184  Legislative Auditing Committee, and a district school board
  185  shall notify the Commissioner of Education and the Legislative
  186  Auditing Committee, when one or more of the conditions specified
  187  in subsection (1) have occurred or will occur if action is not
  188  taken to assist the local governmental entity, charter school,
  189  charter technical career center, or district school board. In
  190  addition, any state agency must, within 30 days after a
  191  determination that one or more of the conditions specified in
  192  subsection (1) have occurred or will occur if action is not
  193  taken to assist the local governmental entity, charter school,
  194  charter technical career center, or district school board,
  195  notify the Governor, charter school sponsor, charter technical
  196  career center sponsor, or the Commissioner of Education, as
  197  appropriate, and the Legislative Auditing Committee.
  198         (3) Upon notification that one or more of the conditions in
  199  subsection (1) have occurred or will occur if action is not
  200  taken to assist the local governmental entity or district school
  201  board exist, the Governor or his or her designee shall contact
  202  the local governmental entity or the Commissioner of Education
  203  or his or her designee shall contact the district school board
  204  to determine what actions have been taken by the local
  205  governmental entity or the district school board to resolve or
  206  prevent the condition. The Governor or the Commissioner of
  207  Education, as appropriate, shall determine whether the local
  208  governmental entity or the district school board needs state
  209  assistance to resolve or prevent the condition. If state
  210  assistance is needed, the local governmental entity or district
  211  school board is considered to be in a state of financial
  212  emergency. The Governor or the Commissioner of Education, as
  213  appropriate, has the authority to implement measures as set
  214  forth in ss. 218.50-218.504 to assist the local governmental
  215  entity or district school board in resolving the financial
  216  emergency. Such measures may include, but are not limited to:
  217         (a) Requiring approval of the local governmental entity’s
  218  budget by the Governor or approval of the district school
  219  board’s budget by the Commissioner of Education.
  220         (b) Authorizing a state loan to a local governmental entity
  221  and providing for repayment of same.
  222         (c) Prohibiting a local governmental entity or district
  223  school board from issuing bonds, notes, certificates of
  224  indebtedness, or any other form of debt until such time as it is
  225  no longer subject to this section.
  226         (d) Making such inspections and reviews of records,
  227  information, reports, and assets of the local governmental
  228  entity or district school board. The appropriate local officials
  229  shall cooperate in such inspections and reviews.
  230         (e) Consulting with officials and auditors of the local
  231  governmental entity or the district school board and the
  232  appropriate state officials regarding any steps necessary to
  233  bring the books of account, accounting systems, financial
  234  procedures, and reports into compliance with state requirements.
  235         (f) Providing technical assistance to the local
  236  governmental entity or the district school board.
  237         (g)1. Establishing a financial emergency board to oversee
  238  the activities of the local governmental entity or the district
  239  school board. If a financial emergency board is established for
  240  a local governmental entity, the Governor shall appoint board
  241  members and select a chair. If a financial emergency board is
  242  established for a district school board, the State Board of
  243  Education shall appoint board members and select a chair. The
  244  financial emergency board shall adopt such rules as are
  245  necessary for conducting board business. The board may:
  246         a. Make such reviews of records, reports, and assets of the
  247  local governmental entity or the district school board as are
  248  needed.
  249         b. Consult with officials and auditors of the local
  250  governmental entity or the district school board and the
  251  appropriate state officials regarding any steps necessary to
  252  bring the books of account, accounting systems, financial
  253  procedures, and reports of the local governmental entity or the
  254  district school board into compliance with state requirements.
  255         c. Review the operations, management, efficiency,
  256  productivity, and financing of functions and operations of the
  257  local governmental entity or the district school board.
  258         2. The recommendations and reports made by the financial
  259  emergency board must be submitted to the Governor for local
  260  governmental entities or to the Commissioner of Education and
  261  the State Board of Education for district school boards for
  262  appropriate action.
  263         (h) Requiring and approving a plan, to be prepared by
  264  officials of the local governmental entity or the district
  265  school board in consultation with the appropriate state
  266  officials, prescribing actions that will cause the local
  267  governmental entity or district school board to no longer be
  268  subject to this section. The plan must include, but need not be
  269  limited to:
  270         1. Provision for payment in full of obligations outlined in
  271  subsection (1), designated as priority items, that are currently
  272  due or will come due.
  273         2. Establishment of priority budgeting or zero-based
  274  budgeting in order to eliminate items that are not affordable.
  275         3. The prohibition of a level of operations which can be
  276  sustained only with nonrecurring revenues.
  277         (4)(a) Upon notification that one or more of the conditions
  278  in subsection (1) have occurred or will occur if action is not
  279  taken to assist the charter school exist, the charter school
  280  sponsor or the sponsor’s designee and the Commissioner of
  281  Education shall contact the charter school governing body to
  282  determine what actions have been taken by the charter school
  283  governing body to resolve or prevent the condition. The
  284  Commissioner of Education charter school sponsor has the
  285  authority to require and approve a financial recovery plan, to
  286  be prepared by the charter school governing body, prescribing
  287  actions that will resolve or prevent the condition cause the
  288  charter school to no longer be subject to this section. The
  289  Department of Education shall establish guidelines for
  290  developing such plans.
  291         (b)Upon notification that one or more of the conditions in
  292  subsection (1) have occurred or will occur if action is not
  293  taken to assist the charter technical career center, the charter
  294  technical career center sponsor or the sponsor’s designee and
  295  the Commissioner of Education shall contact the charter
  296  technical career center governing body to determine what actions
  297  have been taken by the governing body to resolve or prevent the
  298  condition. The Commissioner of Education may require and approve
  299  a financial recovery plan, to be prepared by the charter
  300  technical career center governing body, prescribing actions that
  301  will resolve or prevent the condition.
  302         (c)The Commissioner of Education shall determine if the
  303  charter school or charter technical career center needs a
  304  financial recovery plan to resolve the condition. If the
  305  Commissioner of Education determines that a financial recovery
  306  plan is needed, the charter school or charter technical career
  307  center is considered to be in a state of financial emergency.
  308  
  309  The Department of Education, with the involvement of sponsors,
  310  charter schools, and charter technical career centers, shall
  311  establish guidelines for developing a financial recovery plan.
  312         Section 6. Section 218.504, Florida Statutes, is amended to
  313  read:
  314         218.504 Cessation of state action.—The Governor or the
  315  Commissioner of Education, as appropriate, has the authority to
  316  terminate all state actions pursuant to ss. 218.50-218.504.
  317  Cessation of state action must not occur until the Governor or
  318  the Commissioner of Education, as appropriate, has determined
  319  that:
  320         (1) The local governmental entity, charter school, charter
  321  technical career center, or district school board:
  322         (a) Has established and is operating an effective financial
  323  accounting and reporting system.
  324         (b) Has resolved the conditions outlined in s. 218.503(1).
  325         (2) None of the conditions outlined in s. 218.503(1)
  326  exists.
  327         Section 7. Paragraph (b) of subsection (5), paragraphs (a),
  328  (b), and (g) of subsection (6), paragraph (a) of subsection (7),
  329  paragraph (d) of subsection (8), paragraphs (g) through (q) of
  330  subsection (9), and subsections (21) and (23) of section
  331  1002.33, Florida Statutes, are amended, present subsection (24)
  332  of that section is redesignated as subsection (26), and new
  333  subsections (24) and (25) are added to that section, to read:
  334         1002.33 Charter schools.—
  335         (5) SPONSOR; DUTIES.—
  336         (b) Sponsor duties.—
  337         1.a. The sponsor shall monitor and review the charter
  338  school in its progress toward the goals established in the
  339  charter.
  340         b. The sponsor shall monitor the revenues and expenditures
  341  of the charter school and perform the duties provided in s.
  342  1002.345.
  343         c. The sponsor may approve a charter for a charter school
  344  before the applicant has identified secured space, equipment, or
  345  personnel, if the applicant indicates approval is necessary for
  346  it to raise working funds.
  347         d. The sponsor’s policies shall not apply to a charter
  348  school unless mutually agreed to by both the sponsor and the
  349  charter school.
  350         e. The sponsor shall ensure that the charter is innovative
  351  and consistent with the state education goals established by s.
  352  1000.03(5).
  353         f. The sponsor shall ensure that the charter school
  354  participates in the state’s education accountability system. If
  355  a charter school falls short of performance measures included in
  356  the approved charter, the sponsor shall report such shortcomings
  357  to the Department of Education.
  358         g. The sponsor shall not be liable for civil damages under
  359  state law for personal injury, property damage, or death
  360  resulting from an act or omission of an officer, employee,
  361  agent, or governing body of the charter school.
  362         h. The sponsor shall not be liable for civil damages under
  363  state law for any employment actions taken by an officer,
  364  employee, agent, or governing body of the charter school.
  365         i. The sponsor’s duties to monitor the charter school shall
  366  not constitute the basis for a private cause of action.
  367         j. The sponsor shall not impose additional reporting
  368  requirements on a charter school without providing reasonable
  369  and specific justification in writing to the charter school.
  370         2. Immunity for the sponsor of a charter school under
  371  subparagraph 1. applies only with respect to acts or omissions
  372  not under the sponsor’s direct authority as described in this
  373  section.
  374         3. Nothing contained in This paragraph does not waive shall
  375  be considered a waiver of sovereign immunity by a district
  376  school board’s sovereign immunity board.
  377         4. A community college may work with the school district or
  378  school districts in its designated service area to develop
  379  charter schools that offer secondary education. These charter
  380  schools must include an option for students to receive an
  381  associate degree upon high school graduation. District school
  382  boards shall cooperate with and assist the community college on
  383  the charter application. Community college applications for
  384  charter schools are not subject to the time deadlines outlined
  385  in subsection (6) and may be approved by the district school
  386  board at any time during the year. Community colleges may shall
  387  not report FTE for any students who receive FTE funding through
  388  the Florida Education Finance Program.
  389         (6) APPLICATION PROCESS AND REVIEW.—Charter school
  390  applications are subject to the following requirements:
  391         (a) A person or entity wishing to open a charter school
  392  shall prepare and submit an application on a model application
  393  form prepared by the Department of Education which that:
  394         1. Demonstrates how the school will use the guiding
  395  principles and meet the statutorily defined purpose of a charter
  396  school.
  397         2. Provides a detailed curriculum plan that illustrates how
  398  students will be provided services to attain the Sunshine State
  399  Standards.
  400         3. Contains goals and objectives for improving student
  401  learning and measuring that improvement. These goals and
  402  objectives must indicate how much academic improvement students
  403  are expected to show each year, how success will be evaluated,
  404  and the specific results to be attained through instruction.
  405         4. Describes the reading curriculum and differentiated
  406  strategies that will be used for students reading at grade level
  407  or higher and a separate curriculum and strategies for students
  408  who are reading below grade level. A sponsor shall deny a
  409  charter if the school does not propose a reading curriculum that
  410  is consistent with effective teaching strategies that are
  411  grounded in scientifically based reading research.
  412         5. Contains an annual financial plan for each year
  413  requested by the charter for operation of the school for up to 5
  414  years. This plan must contain anticipated fund balances based on
  415  revenue projections, a spending plan based on projected revenues
  416  and expenses, and a description of controls that will safeguard
  417  finances and projected enrollment trends.
  418         6.Documents that the applicant has participated in the
  419  training required in subparagraph (g)2. A sponsor may require an
  420  applicant to provide additional information as an addendum to
  421  the charter school application described in this paragraph.
  422         (b) A sponsor shall receive and review all applications for
  423  a charter school using an evaluation instrument developed by the
  424  Department of Education. Beginning with the 2007-2008 school
  425  year, a sponsor shall receive and consider charter school
  426  applications received on or before August 1 of each calendar
  427  year for charter schools to be opened at the beginning of the
  428  school district’s next school year, or to be opened at a time
  429  agreed to by the applicant and the sponsor. A sponsor may
  430  receive applications later than this date if it chooses. A
  431  sponsor may not charge an applicant for a charter any fee for
  432  the processing or consideration of an application, and a sponsor
  433  may not base its consideration or approval of an application
  434  upon the promise of future payment of any kind.
  435         1. In order to facilitate an accurate budget projection
  436  process, a sponsor shall be held harmless for FTE students who
  437  are not included in the FTE projection due to approval of
  438  charter school applications after the FTE projection deadline.
  439  In a further effort to facilitate an accurate budget projection,
  440  within 15 calendar days after receipt of a charter school
  441  application, a sponsor shall report to the Department of
  442  Education the name of the applicant entity, the proposed charter
  443  school location, and its projected FTE.
  444         2. In order to ensure fiscal responsibility, an application
  445  for a charter school shall include a full accounting of expected
  446  assets, a projection of expected sources and amounts of income,
  447  including income derived from projected student enrollments and
  448  from community support, and an expense projection that includes
  449  full accounting of the costs of operation, including start-up
  450  costs.
  451         3. A sponsor shall by a majority vote approve or deny an
  452  application no later than 60 calendar days after the application
  453  is received, unless the sponsor and the applicant mutually agree
  454  in writing to temporarily postpone the vote to a specific date,
  455  at which time the sponsor shall by a majority vote approve or
  456  deny the application. If the sponsor fails to act on the
  457  application, an applicant may appeal to the State Board of
  458  Education as provided in paragraph (c). If an application is
  459  denied, the sponsor shall, within 10 calendar days after such
  460  denial, articulate in writing the specific reasons, based upon
  461  good cause, supporting its denial of the charter application and
  462  shall provide the letter of denial and supporting documentation
  463  to the applicant and to the Department of Education supporting
  464  those reasons.
  465         4. For budget projection purposes, the sponsor shall report
  466  to the Department of Education the approval or denial of a
  467  charter application within 10 calendar days after such approval
  468  or denial. In the event of approval, the report to the
  469  Department of Education shall include the final projected FTE
  470  for the approved charter school.
  471         5. Upon approval of a charter application, the initial
  472  startup shall commence with the beginning of the public school
  473  calendar for the district in which the charter is granted unless
  474  the sponsor allows a waiver of this subparagraph provision for
  475  good cause.
  476         (g)1. The Department of Education shall offer or arrange
  477  for training and technical assistance to charter school
  478  applicants in developing business plans and estimating costs and
  479  income. This assistance shall address estimating startup costs,
  480  projecting enrollment, and identifying the types and amounts of
  481  state and federal financial assistance the charter school may
  482  will be eligible to receive. The department may provide other
  483  technical assistance to an applicant upon written request.
  484         2.A charter school applicant must participate in the
  485  training provided by the Department of Education before filing
  486  an application. However, a sponsor may require the charter
  487  school applicant to attend training provided by the sponsor in
  488  lieu of the department’s training if the sponsor’s training
  489  standards meet or exceed the standards developed by the
  490  Department of Education. The training shall include instruction
  491  in accurate financial planning and good business practices. If
  492  the applicant is a management company or other nonprofit
  493  organization, the charter school principal and the chief
  494  financial officer or his or her equivalent must also participate
  495  in the training.
  496         (7) CHARTER.—The major issues involving the operation of a
  497  charter school shall be considered in advance and written into
  498  the charter. The charter shall be signed by the governing body
  499  of the charter school and the sponsor, following a public
  500  hearing to ensure community input.
  501         (a) The charter shall address, and criteria for approval of
  502  the charter shall be based on:
  503         1. The school’s mission, the students to be served, and the
  504  ages and grades to be included.
  505         2. The focus of the curriculum, the instructional methods
  506  to be used, any distinctive instructional techniques to be
  507  employed, and identification and acquisition of appropriate
  508  technologies needed to improve educational and administrative
  509  performance which include a means for promoting safe, ethical,
  510  and appropriate uses of technology which comply with legal and
  511  professional standards. The charter shall ensure that reading is
  512  a primary focus of the curriculum and that resources are
  513  provided to identify and provide specialized instruction for
  514  students who are reading below grade level. The curriculum and
  515  instructional strategies for reading must be consistent with the
  516  Sunshine State Standards and grounded in scientifically based
  517  reading research.
  518         3. The current incoming baseline standard of student
  519  academic achievement, the outcomes to be achieved, and the
  520  method of measurement that will be used. The criteria listed in
  521  this subparagraph shall include a detailed description for each
  522  of the following:
  523         a. How the baseline student academic achievement levels and
  524  prior rates of academic progress will be established.
  525         b. How these baseline rates will be compared to rates of
  526  academic progress achieved by these same students while
  527  attending the charter school.
  528         c. To the extent possible, how these rates of progress will
  529  be evaluated and compared with rates of progress of other
  530  closely comparable student populations.
  531  
  532  The district school board is required to provide academic
  533  student performance data to charter schools for each of their
  534  students coming from the district school system, as well as
  535  rates of academic progress of comparable student populations in
  536  the district school system.
  537         4. The methods used to identify the educational strengths
  538  and needs of students and how well educational goals and
  539  performance standards are met by students attending the charter
  540  school. Included in The methods shall provide is a means for the
  541  charter school to ensure accountability to its constituents by
  542  analyzing student performance data and by evaluating the
  543  effectiveness and efficiency of its major educational programs.
  544  Students in charter schools shall, at a minimum, participate in
  545  the statewide assessment program created under s. 1008.22.
  546         5. In secondary charter schools, a method for determining
  547  that a student has satisfied the requirements for graduation in
  548  s. 1003.43.
  549         6. A method for resolving conflicts between the governing
  550  body of the charter school and the sponsor.
  551         7. The admissions procedures and dismissal procedures,
  552  including the school’s code of student conduct.
  553         8. The ways by which the school will achieve a
  554  racial/ethnic balance reflective of the community it serves or
  555  within the racial/ethnic range of other public schools in the
  556  same school district.
  557         9. The financial and administrative management of the
  558  school, including a reasonable demonstration of the professional
  559  experience or competence of those individuals or organizations
  560  applying to operate the charter school or those hired or
  561  retained to perform such professional services and the
  562  description of clearly delineated responsibilities and the
  563  policies and practices needed to effectively manage the charter
  564  school. A description of internal audit procedures and
  565  establishment of controls to ensure that financial resources are
  566  properly managed must be included. Both public sector and
  567  private sector professional experience shall be equally valid in
  568  such a consideration.
  569         10. The asset and liability projections required in the
  570  application which are incorporated into the charter and which
  571  shall be compared with information provided in the annual report
  572  of the charter school. The charter shall ensure that, if a
  573  charter school internal audit or annual financial audit reveals
  574  a state of financial emergency as defined in s. 218.503 or
  575  deficit financial position, the auditors are required to notify
  576  the charter school governing board, the sponsor, and the
  577  Department of Education. The internal auditor shall report such
  578  findings in the form of an exit interview to the principal or
  579  the principal administrator of the charter school and the chair
  580  of the governing board within 7 working days after finding the
  581  state of financial emergency or deficit position. A final report
  582  shall be provided to the entire governing board, the sponsor,
  583  and the Department of Education within 14 working days after the
  584  exit interview. When a charter school is in a state of financial
  585  emergency, the charter school shall file a detailed financial
  586  recovery plan with the sponsor. The department, with the
  587  involvement of both sponsors and charter schools, shall
  588  establish guidelines for developing such plans.
  589         11. A description of procedures that identify various risks
  590  and provide for a comprehensive approach to reduce the impact of
  591  losses; plans to ensure the safety and security of students and
  592  staff; plans to identify, minimize, and protect others from
  593  violent or disruptive student behavior; and the manner in which
  594  the school will be insured, including whether or not the school
  595  will be required to have liability insurance, and, if so, the
  596  terms and conditions thereof and the amounts of coverage.
  597         12. The term of the charter which shall provide for
  598  cancellation of the charter if insufficient progress has been
  599  made in attaining the student achievement objectives of the
  600  charter and if it is not likely that such objectives can be
  601  achieved before expiration of the charter. The initial term of a
  602  charter shall be for 4 or 5 years. In order to facilitate access
  603  to long-term financial resources for charter school
  604  construction, charter schools that are operated by a
  605  municipality or other public entity as provided by law are
  606  eligible for up to a 15-year charter, subject to approval by the
  607  district school board. A charter lab school is eligible for a
  608  charter for a term of up to 15 years. In addition, to facilitate
  609  access to long-term financial resources for charter school
  610  construction, charter schools that are operated by a private,
  611  not-for-profit, s. 501(c)(3) status corporation are eligible for
  612  up to a 15-year charter, subject to approval by the district
  613  school board. Such long-term charters remain subject to annual
  614  review and may be terminated during the term of the charter, but
  615  only according to the provisions set forth in subsection (8).
  616         13. The facilities to be used and their location.
  617         14. The qualifications to be required of the teachers and
  618  the potential strategies used to recruit, hire, train, and
  619  retain qualified staff to achieve best value.
  620         15. The governance structure of the school, including the
  621  status of the charter school as a public or private employer as
  622  required in paragraph (12)(i).
  623         16. A timetable for implementing the charter which
  624  addresses the implementation of each element thereof and the
  625  date by which the charter shall be awarded in order to meet this
  626  timetable.
  627         17. In the case of an existing public school that is being
  628  converted to charter status, alternative arrangements for
  629  current students who choose not to attend the charter school and
  630  for current teachers who choose not to teach in the charter
  631  school after conversion in accordance with the existing
  632  collective bargaining agreement or district school board rule in
  633  the absence of a collective bargaining agreement. However,
  634  alternative arrangements shall not be required for current
  635  teachers who choose not to teach in a charter lab school, except
  636  as authorized by the employment policies of the state university
  637  which grants the charter to the lab school.
  638         18.Full disclosure of the identity of all relatives
  639  employed by the charter school who are related to the charter
  640  school owner, president, chairperson of the governing board of
  641  directors, superintendent, governing board member, principal,
  642  assistant principal, or any other person employed by the charter
  643  school who has equivalent decisionmaking authority. For the
  644  purpose of this subparagraph, the term “relative” means father,
  645  mother, son, daughter, brother, sister, uncle, aunt, first
  646  cousin, nephew, niece, husband, wife, father-in-law, mother-in
  647  law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
  648  stepfather, stepmother, stepson, stepdaughter, stepbrother,
  649  stepsister, half brother, or half sister.
  650         (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.—
  651         (d) A charter may be terminated immediately if the sponsor
  652  determines that good cause has been shown or if the health,
  653  safety, or welfare of the students is threatened. The sponsor’s
  654  determination is not subject to an informal hearing under
  655  paragraph (b) or pursuant to chapter 120. The sponsor shall
  656  notify in writing the charter school’s governing body, the
  657  charter school principal, and the department if a charter is
  658  immediately terminated. The sponsor shall clearly identify the
  659  specific issues that resulted in the immediate termination and
  660  provide evidence of prior notification of issues resulting in
  661  the immediate termination when appropriate. The school district
  662  in which the charter school is located shall assume operation of
  663  the school under these circumstances. The charter school’s
  664  governing board may, within 30 days after receiving the
  665  sponsor’s decision to terminate the charter, appeal the decision
  666  pursuant to the procedure established in subsection (6).
  667         (9) CHARTER SCHOOL REQUIREMENTS.—
  668         (g)A charter school shall provide for an annual financial
  669  audit in accordance with s. 218.39. Financial audits that reveal
  670  a state of financial emergency as defined in s. 218.503 and are
  671  conducted by a certified public accountant or auditor in
  672  accordance with s. 218.39 shall be provided to the governing
  673  body of the charter school within 7 working days after finding
  674  that a state of financial emergency exists. When a charter
  675  school is found to be in a state of financial emergency by a
  676  certified public accountant or auditor, the charter school must
  677  file a detailed financial recovery plan with the sponsor within
  678  30 days after receipt of the audit.
  679         (g)(h) In order to provide financial information that is
  680  comparable to that reported for other public schools, charter
  681  schools are to maintain all financial records that which
  682  constitute their accounting system:
  683         1. In accordance with the accounts and codes prescribed in
  684  the most recent issuance of the publication titled “Financial
  685  and Program Cost Accounting and Reporting for Florida Schools”;
  686  or
  687         2. At the discretion of the charter school governing board,
  688  a charter school may elect to follow generally accepted
  689  accounting standards for not-for-profit organizations, but must
  690  reformat this information for reporting according to this
  691  paragraph.
  692  
  693  Charter schools shall provide annual financial report and
  694  program cost report information in the state-required formats
  695  for inclusion in district reporting in compliance with s.
  696  1011.60(1). Charter schools that are operated by a municipality
  697  or are a component unit of a parent nonprofit organization may
  698  use the accounting system of the municipality or the parent but
  699  must reformat this information for reporting according to this
  700  paragraph. A charter school shall provide a monthly financial
  701  statement to the sponsor. The monthly financial statement shall
  702  be in a form prescribed by the Department of Education.
  703         (h)(i) The governing board of the charter school shall
  704  annually adopt and maintain an operating budget.
  705         (i)(j) The governing body of the charter school shall
  706  exercise continuing oversight over charter school operations.
  707         (j)(k) The governing body of the charter school shall be
  708  responsible for:
  709         1. Ensuring that the charter school has retained the
  710  services of a certified public accountant or auditor for the
  711  annual financial audit, pursuant to s. 1002.345(2) paragraph
  712  (g), who shall submit the report to the governing body.
  713         2. Reviewing and approving the audit report, including
  714  audit findings and recommendations for the financial recovery
  715  plan.
  716         3.a.Performing the duties in s. 1002.345, including
  717  monitoring a corrective action plan.
  718         b. Monitoring a financial recovery plan in order to ensure
  719  compliance.
  720         4. Participating in governance training approved by the
  721  department which that must include government in the sunshine,
  722  conflicts of interest, ethics, and financial responsibility.
  723         (k)(l) The governing body of the charter school shall
  724  report its progress annually to its sponsor, which shall forward
  725  the report to the Commissioner of Education at the same time as
  726  other annual school accountability reports. The Department of
  727  Education shall develop a uniform, online annual accountability
  728  report to be completed by charter schools. This report shall be
  729  easy to utilize and contain demographic information, student
  730  performance data, and financial accountability information. A
  731  charter school shall not be required to provide information and
  732  data that is duplicative and already in the possession of the
  733  department. The Department of Education shall include in its
  734  compilation a notation if a school failed to file its report by
  735  the deadline established by the department. The report shall
  736  include at least the following components:
  737         1. Student achievement performance data, including the
  738  information required for the annual school report and the
  739  education accountability system governed by ss. 1008.31 and
  740  1008.345. Charter schools are subject to the same accountability
  741  requirements as other public schools, including reports of
  742  student achievement information that links baseline student data
  743  to the school’s performance projections identified in the
  744  charter. The charter school shall identify reasons for any
  745  difference between projected and actual student performance.
  746         2. Financial status of the charter school which must
  747  include revenues and expenditures at a level of detail that
  748  allows for analysis of the charter school’s ability to meet
  749  financial obligations and timely repayment of debt.
  750         3. Documentation of the facilities in current use and any
  751  planned facilities for use by the charter school for instruction
  752  of students, administrative functions, or investment purposes.
  753         4. Descriptive information about the charter school’s
  754  personnel, including salary and benefit levels of charter school
  755  employees, the proportion of instructional personnel who hold
  756  professional or temporary certificates, and the proportion of
  757  instructional personnel teaching in-field or out-of-field.
  758         (l)(m) A charter school shall not levy taxes or issue bonds
  759  secured by tax revenues.
  760         (m)(n) A charter school shall provide instruction for at
  761  least the number of days required by law for other public
  762  schools, and may provide instruction for additional days.
  763         (n)(o) The director and a representative of the governing
  764  body of a charter school that has received a school grade of “D”
  765  under s. 1008.34(2) shall appear before the sponsor or the
  766  sponsor’s staff at least once a year to present information
  767  concerning each contract component having noted deficiencies.
  768  The sponsor shall communicate at the meeting, and in writing to
  769  the director, the services provided to the school to help the
  770  school address its deficiencies.
  771         (o)(p) Upon notification that a charter school receives a
  772  school grade of “D” for 2 consecutive years or a school grade of
  773  “F” under s. 1008.34(2), the charter school sponsor or the
  774  sponsor’s staff shall require the director and a representative
  775  of the governing body to submit to the sponsor for approval a
  776  school improvement plan to raise student achievement and to
  777  implement the plan. The sponsor has the authority to approve a
  778  school improvement plan that the charter school will implement
  779  in the following school year. The sponsor may also consider the
  780  State Board of Education’s recommended action pursuant to s.
  781  1008.33(1) as part of the school improvement plan. The
  782  Department of Education shall offer technical assistance and
  783  training to the charter school and its governing body and
  784  establish guidelines for developing, submitting, and approving
  785  such plans.
  786         1. If the charter school fails to improve its student
  787  performance from the year immediately prior to the
  788  implementation of the school improvement plan, the sponsor shall
  789  place the charter school on probation and shall require the
  790  charter school governing body to take one of the following
  791  corrective actions:
  792         a. Contract for the educational services of the charter
  793  school;
  794         b. Reorganize the school at the end of the school year
  795  under a new director or principal who is authorized to hire new
  796  staff and implement a plan that addresses the causes of
  797  inadequate progress; or
  798         c. Reconstitute the charter school.
  799         2. A charter school that is placed on probation shall
  800  continue the corrective actions required under subparagraph 1.
  801  until the charter school improves its student performance from
  802  the year prior to the implementation of the school improvement
  803  plan.
  804         3. Notwithstanding any provision of this paragraph, the
  805  sponsor may terminate the charter at any time pursuant to the
  806  provisions of subsection (8).
  807         (p)(q) The director and a representative of the governing
  808  body of a graded charter school that has submitted a school
  809  improvement plan or has been placed on probation under paragraph
  810  (o) (p) shall appear before the sponsor or the sponsor’s staff
  811  at least once a year to present information regarding the
  812  corrective strategies that are being implemented by the school
  813  pursuant to the school improvement plan. The sponsor shall
  814  communicate at the meeting, and in writing to the director, the
  815  services provided to the school to help the school address its
  816  deficiencies.
  817         (21) PUBLIC INFORMATION ON CHARTER SCHOOLS.—
  818         (a) The Department of Education shall provide information
  819  to the public, directly and through sponsors, both on how to
  820  form and operate a charter school and on how to enroll in a
  821  charter school schools once it is they are created. This
  822  information shall include a standard application format, charter
  823  format, evaluation instrument, and charter renewal format, which
  824  shall include the information specified in subsection (7) and
  825  shall be developed by consulting and negotiating with both
  826  school districts and charter schools before implementation. The
  827  charter and charter renewal These formats shall be used as
  828  guidelines by charter school sponsors.
  829         (b)1.The Department of Education shall report student
  830  assessment data pursuant to s. 1008.34(3)(c) which is reported
  831  to schools that receive a school grade or student assessment
  832  data pursuant to s. 1008.341(3) which is reported to alternative
  833  schools that receive a school improvement rating to each charter
  834  school that:
  835         a.Does not receive a school grade pursuant to s. 1008.34
  836  or a school improvement rating pursuant to s. 1008.341; and
  837         b.Serves at least 10 students who are tested on the
  838  statewide assessment test pursuant to s. 1008.22.
  839         2.The charter school shall report the information in
  840  subparagraph 1. to each parent of a student at the charter
  841  school, the parent of a child on a waiting list for the charter
  842  school, the district in which the charter school is located, and
  843  the governing board of the charter school. This paragraph does
  844  not abrogate the provisions of s. 1002.22, relating to student
  845  records, or the requirements of 20 U.S.C. s. 1232g, the Family
  846  Educational Rights and Privacy Act.
  847         3.a.Pursuant to this paragraph, the Department of
  848  Education shall compare the charter school student performance
  849  data for each charter school in subparagraph 1. with the student
  850  performance data in traditional public schools in the district
  851  in which the charter school is located and other charter schools
  852  in the state. For alternative charter schools, the department
  853  shall compare the student performance data described in this
  854  paragraph with all alternative schools in the state. The
  855  comparative data shall be provided by the following grade
  856  groupings:
  857         (I)Grades 3 through 5;
  858         (II)Grades 6 through 8; and
  859         (III)Grades 9 through 11.
  860         b.Each charter school shall provide the information
  861  specified in this paragraph on its Internet website and also
  862  provide notice to the public at large in a manner provided by
  863  the rules of the State Board of Education. The State Board of
  864  Education shall adopt rules to administer the notice
  865  requirements of this subparagraph pursuant to ss. 120.536(1) and
  866  120.54. The website shall include, through links or actual
  867  content, other information related to school performance.
  868         (23) ANALYSIS OF CHARTER SCHOOL PERFORMANCE.—Upon receipt
  869  of the annual report required by paragraph (9)(k) (9)(l), the
  870  Department of Education shall provide to the State Board of
  871  Education, the Commissioner of Education, the Governor, the
  872  President of the Senate, and the Speaker of the House of
  873  Representatives an analysis and comparison of the overall
  874  performance of charter school students, to include all students
  875  whose scores are counted as part of the statewide assessment
  876  program, versus comparable public school students in the
  877  district as determined by the statewide assessment program
  878  currently administered in the school district, and other
  879  assessments administered pursuant to s. 1008.22(3).
  880         (24)RESTRICTION ON EMPLOYMENT OF RELATIVES.—
  881         (a)This subsection applies to charter school personnel in
  882  a charter school operated by a private entity. As used in this
  883  subsection, the term:
  884         1.“Charter school personnel” means a charter school owner,
  885  president, chairperson of the governing board of directors,
  886  superintendent, governing board member, principal, assistant
  887  principal, or any other person employed by the charter school
  888  who has equivalent decisionmaking authority and in whom is
  889  vested the authority, or to whom the authority has been
  890  delegated, to appoint, employ, promote, or advance individuals
  891  or to recommend individuals for appointment, employment,
  892  promotion, or advancement in connection with employment in a
  893  charter school, including the authority as a member of a
  894  governing body of a charter school to vote on the appointment,
  895  employment, promotion, or advancement of individuals.
  896         2.“Relative” means father, mother, son, daughter, brother,
  897  sister, uncle, aunt, first cousin, nephew, niece, husband, wife,
  898  father-in-law, mother-in-law, son-in-law, daughter-in-law,
  899  brother-in-law, sister-in-law, stepfather, stepmother, stepson,
  900  stepdaughter, stepbrother, stepsister, half brother, or half
  901  sister.
  902         (b)Charter school personnel may not appoint, employ,
  903  promote, or advance, or advocate for appointment, employment,
  904  promotion, or advancement, in or to a position in the charter
  905  school in which the personnel are serving or over which the
  906  personnel exercises jurisdiction or control any individual who
  907  is a relative. An individual may not be appointed, employed,
  908  promoted, or advanced in or to a position in a charter school if
  909  such appointment, employment, promotion, or advancement has been
  910  advocated by charter school personnel who serve in or exercise
  911  jurisdiction or control over the charter school and who is a
  912  relative of the individual or if such appointment, employment,
  913  promotion, or advancement is made by the governing board of
  914  which a relative of the individual is a member.
  915         (c)The approval of budgets does not constitute
  916  “jurisdiction or control” for the purposes of this subsection.
  917  
  918  Charter school personnel in schools operated by a municipality
  919  or other public entity are subject to s. 112.3135.
  920         (25)STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.—
  921         (a)A member of a governing board of a charter school,
  922  including a charter school operated by a private entity, is
  923  subject to ss. 112.313(2), (3), (7), and (12) and 112.3143(3).
  924         (b)A member of a governing board of a charter school
  925  operated by a municipality or other public entity is subject to
  926  s. 112.3144, which relates to the disclosure of financial
  927  interests.
  928         Section 8. Subsections (4) and (5), paragraphs (d) and (f)
  929  of subsection (6), paragraph (c) of subsection (10), paragraph
  930  (f) of subsection (11), and subsection (13) of section 1002.34,
  931  Florida Statutes, are amended to read:
  932         1002.34 Charter technical career centers.—
  933         (4) CHARTER.—A sponsor may designate centers as provided in
  934  this section. An application to establish a center may be
  935  submitted by a sponsor or another organization that is
  936  determined, by rule of the State Board of Education, to be
  937  appropriate. However, an independent school is not eligible for
  938  status as a center. The charter must be signed by the governing
  939  body of the center and the sponsor, and must be approved by the
  940  district school board and community college board of trustees in
  941  whose geographic region the facility is located. If a charter
  942  technical career center is established by the conversion to
  943  charter status of a public technical center formerly governed by
  944  a district school board, the charter status of that center takes
  945  precedence in any question of governance. The governance of the
  946  center or of any program within the center remains with its
  947  board of directors unless the board agrees to a change in
  948  governance or its charter is revoked as provided in subsection
  949  (15). Such a conversion charter technical career center is not
  950  affected by a change in the governance of public technical
  951  centers or of programs within other centers that are or have
  952  been governed by district school boards. A charter technical
  953  career center, or any program within such a center, that was
  954  governed by a district school board and transferred to a
  955  community college prior to the effective date of this act is not
  956  affected by this provision. An applicant who wishes to establish
  957  a center must submit to the district school board or community
  958  college board of trustees, or a consortium of one or more of
  959  each, an application on a form developed by the Department of
  960  Education which that includes:
  961         (a) The name of the proposed center.
  962         (b) The proposed structure of the center, including a list
  963  of proposed members of the board of directors or a description
  964  of the qualifications for and method of their appointment or
  965  election.
  966         (c) The workforce development goals of the center, the
  967  curriculum to be offered, and the outcomes and the methods of
  968  assessing the extent to which the outcomes are met.
  969         (d) The admissions policy and criteria for evaluating the
  970  admission of students.
  971         (e) A description of the staff responsibilities and the
  972  proposed qualifications of the teaching staff.
  973         (f) A description of the procedures to be implemented to
  974  ensure significant involvement of representatives of business
  975  and industry in the operation of the center.
  976         (g) A method for determining whether a student has
  977  satisfied the requirements for graduation specified in s.
  978  1003.43 and for completion of a postsecondary certificate or
  979  degree.
  980         (h) A method for granting secondary and postsecondary
  981  diplomas, certificates, and degrees.
  982         (i) A description of and address for the physical facility
  983  in which the center will be located.
  984         (j) A method for of resolving conflicts between the
  985  governing body of the center and the sponsor and between
  986  consortium members, if applicable.
  987         (k) A method for reporting student data as required by law
  988  and rule.
  989         (l)A statement that the applicant has participated in the
  990  training provided by the Department of Education.
  991         (m)The identity of all relatives employed by the charter
  992  technical career center who are related to the center owner,
  993  president, chairperson of the governing board of directors,
  994  superintendent, governing board member, principal, assistant
  995  principal, or any other person employed by the center who has
  996  equivalent decisionmaking authority. As used in this paragraph,
  997  the term “relative” means father, mother, son, daughter,
  998  brother, sister, uncle, aunt, first cousin, nephew, niece,
  999  husband, wife, father-in-law, mother-in-law, son-in-law,
 1000  daughter-in-law, brother-in-law, sister-in-law, stepfather,
 1001  stepmother, stepson, stepdaughter, stepbrother, stepsister, half
 1002  brother, or half sister.
 1003         (m)(l) Other information required by the district school
 1004  board or community college board of trustees.
 1005  
 1006  Students at a center must meet the same testing and academic
 1007  performance standards as those established by law and rule for
 1008  students at public schools and public technical centers. The
 1009  students must also meet any additional assessment indicators
 1010  that are included within the charter approved by the district
 1011  school board or community college board of trustees.
 1012         (5) APPLICATION.—An application to establish a center must
 1013  be submitted by February 1 of the year preceding the school year
 1014  in which the center will begin operation. The sponsor must
 1015  review the application using an evaluation instrument developed
 1016  by the Department of Education and make a final decision on
 1017  whether to approve the application and grant the charter by
 1018  March 1, and may condition the granting of a charter on the
 1019  center’s taking certain actions or maintaining certain
 1020  conditions. Such actions and conditions must be provided to the
 1021  applicant in writing. The district school board or community
 1022  college board of trustees is not required to issue a charter to
 1023  any person.
 1024         (6) SPONSOR.—A district school board or community college
 1025  board of trustees or a consortium of one or more of each may
 1026  sponsor a center in the county in which the board has
 1027  jurisdiction.
 1028         (d)1.The Department of Education shall offer or arrange
 1029  for training and technical assistance to applicants in
 1030  developing business plans and estimating costs and income. This
 1031  assistance shall address estimating startup costs, projecting
 1032  enrollment, and identifying the types and amounts of state and
 1033  federal financial assistance the center may be eligible to
 1034  receive. The training shall include instruction in accurate
 1035  financial planning and good business practices.
 1036         2.An applicant must participate in the training provided
 1037  by the Department of Education before filing an application. The
 1038  Department of Education may provide technical assistance to an
 1039  applicant upon written request.
 1040         (f) The sponsor shall monitor and review the center’s
 1041  progress toward charter goals and shall monitor the center’s
 1042  revenues and expenditures. The sponsor shall perform the duties
 1043  provided in s. 1002.345.
 1044         (10) EXEMPTION FROM STATUTES.—
 1045         (c) A center must comply with the antidiscrimination
 1046  provisions in of s. 1000.05 and the provisions in s. 1002.33(24)
 1047  which relate to the employment of relatives.
 1048         (11) FUNDING.—
 1049         (f) A center shall provide for an annual financial audit in
 1050  accordance with s. 218.39. A center shall provide a monthly
 1051  financial statement to the sponsor. The monthly financial
 1052  statement shall be in a form prescribed by the Department of
 1053  Education.
 1054         (13) BOARD OF DIRECTORS AUTHORITY.—The board of directors
 1055  of a center may decide matters relating to the operation of the
 1056  school, including budgeting, curriculum, and operating
 1057  procedures, subject to the center’s charter. The board of
 1058  directors is responsible for performing the duties provided in
 1059  s. 1002.345, including monitoring the corrective action plan.
 1060  The board of directors must comply with s. 1002.33(25).
 1061         Section 9. Section 1002.345, Florida Statutes, is created
 1062  to read:
 1063         1002.345Determination of deteriorating financial
 1064  conditions and financial emergencies for charter schools and
 1065  charter technical career centers.—This section applies to
 1066  charter schools operating pursuant to s. 1002.33 and to charter
 1067  technical career centers operating pursuant to s. 1002.34.
 1068         (1)EXPEDITED REVIEW; REQUIREMENTS.—
 1069         (a)A charter school or a charter technical career center
 1070  is subject to an expedited review by the sponsor if one of the
 1071  following occurs:
 1072         1.Failure to provide for an audit required by s. 218.39.
 1073         2.Failure to comply with reporting requirements pursuant
 1074  to s. 1002.33(9) or s. 1002.34(11)(f) or (14).
 1075         3.A deteriorating financial condition identified through
 1076  an annual audit pursuant to s. 218.39(5) or a monthly financial
 1077  statement pursuant to s. 1002.33(9)(g) or s. 1002.34(11)(f).
 1078  “Deteriorating financial condition” means a circumstance that
 1079  significantly impairs the ability of a charter school or a
 1080  charter technical career center to generate enough revenues to
 1081  meet its expenditures without causing the occurrence of a
 1082  condition described in s. 218.503(1).
 1083         4.Notification pursuant to s. 218.503(2) that one or more
 1084  of the conditions specified in s. 218.503(1) have occurred or
 1085  will occur if action is not taken to assist the charter school
 1086  or charter technical career center.
 1087         (b)A sponsor shall notify the governing board within 7
 1088  business days after one or more of the conditions specified in
 1089  paragraph (a) occur.
 1090         (c)The governing board and the sponsor shall develop a
 1091  corrective action plan and file the plan with the Commissioner
 1092  of Education within 30 business days after notification is
 1093  received as provided in paragraph (b). If the governing board
 1094  and the sponsor are unable to agree on a corrective action plan,
 1095  the Commissioner of Education shall determine the components of
 1096  the plan. The governing board shall implement such plan.
 1097         (d)The governing board shall include the corrective action
 1098  plan and the status of its implementation in the annual progress
 1099  report to the sponsor which is required pursuant to s.
 1100  1002.33(9)(k) or s. 1002.34(14).
 1101         (e)If the governing board fails to implement the
 1102  corrective action plan within 1 year after one or more of the
 1103  conditions specified in paragraph (a) occur, the State Board of
 1104  Education shall prescribe any steps necessary for the charter
 1105  school or the charter technical career center to comply with
 1106  state requirements.
 1107         (f)The chair of the governing board shall annually appear
 1108  before the State Board of Education and report on the
 1109  implementation of the State Board of Education’s requirements
 1110  referenced in paragraph (e).
 1111         (2)FINANCIAL EMERGENCY; REQUIREMENTS.—
 1112         (a)1.If a financial audit conducted by a certified public
 1113  accountant in accordance with s. 218.39 reveals that one or more
 1114  of the conditions in s. 218.503(1) have occurred or will occur
 1115  if action is not taken to assist the charter school or charter
 1116  technical career center, the auditor shall notify the governing
 1117  board of the charter school or charter technical career center,
 1118  as appropriate, the sponsor, and the Commissioner of Education
 1119  within 7 business days after the finding is made.
 1120         2.If the charter school or charter technical career center
 1121  is found to be in a state of financial emergency pursuant to s.
 1122  218.503(4), the charter school or charter technical career
 1123  center shall file a financial recovery plan pursuant to s.
 1124  218.503 with the sponsor and the Commissioner of Education
 1125  within 30 days after being notified by the Commissioner of
 1126  Education that a financial recovery plan is needed.
 1127         (b)The governing board shall include the financial
 1128  recovery plan and the status of its implementation in the annual
 1129  progress report to the sponsor which is required under s.
 1130  1002.33(9)(k) or s. 1002.34(14).
 1131         (3)REPORT.—The Commissioner of Education shall annually
 1132  report to the State Board of Education each charter school and
 1133  charter technical career center that is subject to a financial
 1134  recovery plan or a corrective action plan under this section.
 1135         (4)RULES.—The State Board of Education shall adopt rules
 1136  pursuant to ss. 120.536(1) and 120.54 for developing financial
 1137  recovery and corrective action plans, defining a deteriorating
 1138  financial condition pursuant to subparagraph (1)(a)3., and
 1139  establishing procedures for determining a deteriorating
 1140  financial condition pursuant to subparagraph (1)(a)3. and s.
 1141  218.39(5). In adopting the rules, the State Board of Education
 1142  may obtain technical assistance from the Auditor General.
 1143         (5)TECHNICAL ASSISTANCE.—The Department of Education shall
 1144  provide technical assistance to charter schools, charter
 1145  technical career centers, governing boards, and sponsors in
 1146  developing financial recovery and corrective action plans.
 1147         (6)FAILURE TO CORRECT DEFICIENCIES.—The sponsor may decide
 1148  not to renew or may terminate a charter if the charter school or
 1149  charter technical career center fails to correct the
 1150  deficiencies noted in the corrective action plan within 1 year
 1151  after being notified of the deficiencies or exhibits one or more
 1152  financial emergency conditions specified in s. 218.503 for 2
 1153  consecutive years. This subsection does not affect a sponsor’s
 1154  authority to terminate or not renew a charter pursuant to s.
 1155  1002.33(8).
 1156         Section 10. This act shall take effect July 1, 2009.