ENROLLED
       2009 Legislature             CS for CS for SB 278, 1st Engrossed
       
       
       
       
       
       
                                                              2009278er
    1  
    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 that good cause for allowing an
   26         interdistrict transfer includes, but is not limited
   27         to, geographic proximity to a charter school;
   28         providing for charter schools to be included in
   29         requests for federal stimulus funds and federal
   30         competitive grants; revising provisions relating to
   31         certain administrative and educational services
   32         provided by sponsors to charter schools; providing for
   33         the disclosure of the performance of a charter school
   34         that is not given a school grade or school improvement
   35         rating; revising the requirements for providing
   36         certain information to the public; providing reporting
   37         requirements; providing restrictions for the
   38         employment of relatives by charter school personnel;
   39         providing that members of a charter school governing
   40         board are subject to certain standards of conduct
   41         specified in ss. 112.313 and 112.3143, F.S.; requiring
   42         that the State Board of Education adopt rules to
   43         implement a charter model application form, evaluation
   44         instrument, and charter and charter renewal formats;
   45         amending s. 1002.34, F.S.; providing additional duties
   46         for charter technical career centers, applicants,
   47         sponsors, and governing boards; requiring the
   48         Department of Education to offer or arrange training
   49         and assistance to applicants for a charter technical
   50         career center; requiring that an applicant participate
   51         in the training; requiring that the State Board of
   52         Education adopt rules to implement a charter model
   53         application form and an evaluation instrument relating
   54         to charter technical career centers; creating s.
   55         1002.345, F.S.; establishing criteria and requirements
   56         for charter schools and charter technical career
   57         centers that have a deteriorating financial condition
   58         or are in a state of financial emergency; establishing
   59         requirements for charter schools, charter technical
   60         career centers, governing bodies, and sponsors;
   61         providing for corrective action and financial recovery
   62         plans; providing for duties of auditors, the
   63         Commissioner of Education, and the Department of
   64         Education; requiring the State Board of Education to
   65         adopt rules; providing grounds for termination or
   66         nonrenewal of a charter; providing an effective date.
   67  
   68  Be It Enacted by the Legislature of the State of Florida:
   69  
   70         Section 1. Paragraph (e) of subsection (7) and subsection
   71  (8) of section 11.45, Florida Statutes, are amended to read:
   72         11.45 Definitions; duties; authorities; reports; rules.—
   73         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   74         (e) The Auditor General shall notify the Governor or the
   75  Commissioner of Education, as appropriate, and the Legislative
   76  Auditing Committee of any audit report reviewed by the Auditor
   77  General pursuant to paragraph (b) which contains a statement
   78  that a local governmental entity, charter school, charter
   79  technical career center, or district school board has met one or
   80  more of the conditions specified in s. 218.503. If the Auditor
   81  General requests a clarification regarding information included
   82  in an audit report to determine whether a local governmental
   83  entity, charter school, charter technical career center, or
   84  district school board has met one or more of the conditions
   85  specified in s. 218.503, the requested clarification must be
   86  provided within 45 days after the date of the request. If the
   87  local governmental entity, charter school, charter technical
   88  career center, or district school board does not comply with the
   89  Auditor General’s request, the Auditor General shall notify the
   90  Legislative Auditing Committee. If, after obtaining the
   91  requested clarification, the Auditor General determines that the
   92  local governmental entity, charter school, charter technical
   93  career center, or district school board has met one or more of
   94  the conditions specified in s. 218.503, he or she shall notify
   95  the Governor or the Commissioner of Education, as appropriate,
   96  and the Legislative Auditing Committee.
   97         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
   98  consultation with the Board of Accountancy, shall adopt rules
   99  for the form and conduct of all financial audits performed by
  100  independent certified public accountants pursuant to ss.
  101  215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
  102  audits of local governmental entities, charter schools, charter
  103  technical career centers, and district school boards must
  104  include, but are not limited to, requirements for the reporting
  105  of information necessary to carry out the purposes of the Local
  106  Governmental Entity, Charter School, Charter Technical Career
  107  Center, and District School Board Financial Emergencies Act as
  108  stated in s. 218.501.
  109         Section 2. Subsection (5) of section 218.39, Florida
  110  Statutes, is amended to read:
  111         218.39 Annual financial audit reports.—
  112         (5) At the conclusion of the audit, the auditor shall
  113  discuss with the chair of each local governmental entity or the
  114  chair’s designee, or with the elected official of each county
  115  agency or with the elected official’s designee, or with the
  116  chair of the district school board or the chair’s designee, or
  117  with the chair of the board of the charter school or the chair’s
  118  designee, or with the chair of the charter technical career
  119  center or the chair’s designee, as appropriate, all of the
  120  auditor’s comments that will be included in the audit report. If
  121  the officer is not available to discuss the auditor’s comments,
  122  their discussion is presumed when the comments are delivered in
  123  writing to his or her office. The auditor shall notify each
  124  member of the governing body of a local governmental entity,
  125  district school board, or charter school, or charter technical
  126  career center for which deteriorating financial conditions exist
  127  that may cause a condition described in s. 218.503(1) to occur
  128  if actions are not taken to address such conditions.
  129         Section 3. Section 218.50, Florida Statutes, is amended to
  130  read:
  131         218.50 Short title.—Sections 218.50-218.504 may be cited as
  132  the “Local Governmental Entity, Charter School, Charter
  133  Technical Career Center, and District School Board Financial
  134  Emergencies Act.”
  135         Section 4. Section 218.501, Florida Statutes, is amended to
  136  read:
  137         218.501 Purposes.—The purposes of ss. 218.50-218.504 are:
  138         (1) To promote the fiscal responsibility of local
  139  governmental entities, charter schools, charter technical career
  140  centers, and district school boards.
  141         (2) To assist local governmental entities, charter schools,
  142  charter technical career centers, and district school boards in
  143  providing essential services without interruption and in meeting
  144  their financial obligations.
  145         (3) To assist local governmental entities, charter schools,
  146  charter technical career centers, and district school boards
  147  through the improvement of local financial management
  148  procedures.
  149         Section 5. Subsections (1), (2), (3), and (4) of section
  150  218.503, Florida Statutes, are amended to read:
  151         218.503 Determination of financial emergency.—
  152         (1) Local governmental entities, charter schools, charter
  153  technical career centers, and district school boards shall be
  154  subject to review and oversight by the Governor, the charter
  155  school sponsor, the charter technical career center sponsor, or
  156  the Commissioner of Education, as appropriate, when any one of
  157  the following conditions occurs:
  158         (a) Failure within the same fiscal year in which due to pay
  159  short-term loans or failure to make bond debt service or other
  160  long-term debt payments when due, as a result of a lack of
  161  funds.
  162         (b) Failure to pay uncontested claims from creditors within
  163  90 days after the claim is presented, as a result of a lack of
  164  funds.
  165         (c) Failure to transfer at the appropriate time, due to
  166  lack of funds:
  167         1. Taxes withheld on the income of employees; or
  168         2. Employer and employee contributions for:
  169         a. Federal social security; or
  170         b. Any pension, retirement, or benefit plan of an employee.
  171         (d) Failure for one pay period to pay, due to lack of
  172  funds:
  173         1. Wages and salaries owed to employees; or
  174         2. Retirement benefits owed to former employees.
  175         (e) An unreserved or total fund balance or retained
  176  earnings deficit, or unrestricted or total net assets deficit,
  177  as reported on the balance sheet or statement of net assets on
  178  the general purpose or fund financial statements, for which
  179  sufficient resources of the local governmental entity, charter
  180  school, charter technical career center, or district school
  181  board, as reported on the balance sheet or statement of net
  182  assets on the general purpose or fund financial statements, are
  183  not available to cover the deficit. Resources available to cover
  184  reported deficits include net assets that are not otherwise
  185  restricted by federal, state, or local laws, bond covenants,
  186  contractual agreements, or other legal constraints. Fixed or
  187  capital assets, the disposal of which would impair the ability
  188  of a local governmental entity, charter school, charter
  189  technical career center, or district school board to carry out
  190  its functions, are not considered resources available to cover
  191  reported deficits.
  192         (2) A local governmental entity shall notify the Governor
  193  and the Legislative Auditing Committee, a charter school shall
  194  notify the charter school sponsor, the Commissioner of
  195  Education, and the Legislative Auditing Committee, a charter
  196  technical career center shall notify the charter technical
  197  career center sponsor, the Commissioner of Education, and the
  198  Legislative Auditing Committee, and a district school board
  199  shall notify the Commissioner of Education and the Legislative
  200  Auditing Committee, when one or more of the conditions specified
  201  in subsection (1) have occurred or will occur if action is not
  202  taken to assist the local governmental entity, charter school,
  203  charter technical career center, or district school board. In
  204  addition, any state agency must, within 30 days after a
  205  determination that one or more of the conditions specified in
  206  subsection (1) have occurred or will occur if action is not
  207  taken to assist the local governmental entity, charter school,
  208  charter technical career center, or district school board,
  209  notify the Governor, charter school sponsor, charter technical
  210  career center sponsor, or the Commissioner of Education, as
  211  appropriate, and the Legislative Auditing Committee.
  212         (3) Upon notification that one or more of the conditions in
  213  subsection (1) have occurred or will occur if action is not
  214  taken to assist the local governmental entity or district school
  215  board exist, the Governor or his or her designee shall contact
  216  the local governmental entity or the Commissioner of Education
  217  or his or her designee shall contact the district school board
  218  to determine what actions have been taken by the local
  219  governmental entity or the district school board to resolve or
  220  prevent the condition. The Governor or the Commissioner of
  221  Education, as appropriate, shall determine whether the local
  222  governmental entity or the district school board needs state
  223  assistance to resolve or prevent the condition. If state
  224  assistance is needed, the local governmental entity or district
  225  school board is considered to be in a state of financial
  226  emergency. The Governor or the Commissioner of Education, as
  227  appropriate, has the authority to implement measures as set
  228  forth in ss. 218.50-218.504 to assist the local governmental
  229  entity or district school board in resolving the financial
  230  emergency. Such measures may include, but are not limited to:
  231         (a) Requiring approval of the local governmental entity’s
  232  budget by the Governor or approval of the district school
  233  board’s budget by the Commissioner of Education.
  234         (b) Authorizing a state loan to a local governmental entity
  235  and providing for repayment of same.
  236         (c) Prohibiting a local governmental entity or district
  237  school board from issuing bonds, notes, certificates of
  238  indebtedness, or any other form of debt until such time as it is
  239  no longer subject to this section.
  240         (d) Making such inspections and reviews of records,
  241  information, reports, and assets of the local governmental
  242  entity or district school board. The appropriate local officials
  243  shall cooperate in such inspections and reviews.
  244         (e) Consulting with officials and auditors of the local
  245  governmental entity or the district school board and the
  246  appropriate state officials regarding any steps necessary to
  247  bring the books of account, accounting systems, financial
  248  procedures, and reports into compliance with state requirements.
  249         (f) Providing technical assistance to the local
  250  governmental entity or the district school board.
  251         (g)1. Establishing a financial emergency board to oversee
  252  the activities of the local governmental entity or the district
  253  school board. If a financial emergency board is established for
  254  a local governmental entity, the Governor shall appoint board
  255  members and select a chair. If a financial emergency board is
  256  established for a district school board, the State Board of
  257  Education shall appoint board members and select a chair. The
  258  financial emergency board shall adopt such rules as are
  259  necessary for conducting board business. The board may:
  260         a. Make such reviews of records, reports, and assets of the
  261  local governmental entity or the district school board as are
  262  needed.
  263         b. Consult with officials and auditors of the local
  264  governmental entity or the district school board and the
  265  appropriate state officials regarding any steps necessary to
  266  bring the books of account, accounting systems, financial
  267  procedures, and reports of the local governmental entity or the
  268  district school board into compliance with state requirements.
  269         c. Review the operations, management, efficiency,
  270  productivity, and financing of functions and operations of the
  271  local governmental entity or the district school board.
  272         2. The recommendations and reports made by the financial
  273  emergency board must be submitted to the Governor for local
  274  governmental entities or to the Commissioner of Education and
  275  the State Board of Education for district school boards for
  276  appropriate action.
  277         (h) Requiring and approving a plan, to be prepared by
  278  officials of the local governmental entity or the district
  279  school board in consultation with the appropriate state
  280  officials, prescribing actions that will cause the local
  281  governmental entity or district school board to no longer be
  282  subject to this section. The plan must include, but need not be
  283  limited to:
  284         1. Provision for payment in full of obligations outlined in
  285  subsection (1), designated as priority items, that are currently
  286  due or will come due.
  287         2. Establishment of priority budgeting or zero-based
  288  budgeting in order to eliminate items that are not affordable.
  289         3. The prohibition of a level of operations which can be
  290  sustained only with nonrecurring revenues.
  291         (4)(a) Upon notification that one or more of the conditions
  292  in subsection (1) have occurred or will occur if action is not
  293  taken to assist the charter school exist, the charter school
  294  sponsor or the sponsor’s designee and the Commissioner of
  295  Education shall contact the charter school governing body to
  296  determine what actions have been taken by the charter school
  297  governing body to resolve or prevent the condition. The
  298  Commissioner of Education charter school sponsor has the
  299  authority to require and approve a financial recovery plan, to
  300  be prepared by the charter school governing body, prescribing
  301  actions that will resolve or prevent the condition cause the
  302  charter school to no longer be subject to this section. The
  303  Department of Education shall establish guidelines for
  304  developing such plans.
  305         (b)Upon notification that one or more of the conditions in
  306  subsection (1) have occurred or will occur if action is not
  307  taken to assist the charter technical career center, the charter
  308  technical career center sponsor or the sponsor’s designee and
  309  the Commissioner of Education shall contact the charter
  310  technical career center governing body to determine what actions
  311  have been taken by the governing body to resolve or prevent the
  312  condition. The Commissioner of Education may require and approve
  313  a financial recovery plan, to be prepared by the charter
  314  technical career center governing body, prescribing actions that
  315  will resolve or prevent the condition.
  316         (c)The Commissioner of Education shall determine if the
  317  charter school or charter technical career center needs a
  318  financial recovery plan to resolve the condition. If the
  319  Commissioner of Education determines that a financial recovery
  320  plan is needed, the charter school or charter technical career
  321  center is considered to be in a state of financial emergency.
  322  
  323  The Department of Education, with the involvement of sponsors,
  324  charter schools, and charter technical career centers, shall
  325  establish guidelines for developing a financial recovery plan.
  326         Section 6. Section 218.504, Florida Statutes, is amended to
  327  read:
  328         218.504 Cessation of state action.—The Governor or the
  329  Commissioner of Education, as appropriate, has the authority to
  330  terminate all state actions pursuant to ss. 218.50-218.504.
  331  Cessation of state action must not occur until the Governor or
  332  the Commissioner of Education, as appropriate, has determined
  333  that:
  334         (1) The local governmental entity, charter school, charter
  335  technical career center, or district school board:
  336         (a) Has established and is operating an effective financial
  337  accounting and reporting system.
  338         (b) Has resolved the conditions outlined in s. 218.503(1).
  339         (2) None of the conditions outlined in s. 218.503(1)
  340  exists.
  341         Section 7. Paragraph (b) of subsection (5), paragraphs (a),
  342  (b), and (g) of subsection (6), paragraph (a) of subsection (7),
  343  paragraph (d) of subsection (8), paragraphs (g) through (q) of
  344  subsection (9), paragraph (a) of subsection (10), present
  345  paragraph (d) of subsection (17) is redesignated as paragraph
  346  (e) and a new paragraph (d) is added to that subsection,
  347  paragraph (a) of subsection (20), and subsections (21) and (23)
  348  of section 1002.33, Florida Statutes, are amended, present
  349  subsection (24) of that section is redesignated as subsection
  350  (26) and amended, and new subsections (24) and (25) are added to
  351  that section, to read:
  352         1002.33 Charter schools.—
  353         (5) SPONSOR; DUTIES.—
  354         (b) Sponsor duties.—
  355         1.a. The sponsor shall monitor and review the charter
  356  school in its progress toward the goals established in the
  357  charter.
  358         b. The sponsor shall monitor the revenues and expenditures
  359  of the charter school and perform the duties provided in s.
  360  1002.345.
  361         c. The sponsor may approve a charter for a charter school
  362  before the applicant has identified secured space, equipment, or
  363  personnel, if the applicant indicates approval is necessary for
  364  it to raise working funds.
  365         d. The sponsor’s policies shall not apply to a charter
  366  school unless mutually agreed to by both the sponsor and the
  367  charter school.
  368         e. The sponsor shall ensure that the charter is innovative
  369  and consistent with the state education goals established by s.
  370  1000.03(5).
  371         f. The sponsor shall ensure that the charter school
  372  participates in the state’s education accountability system. If
  373  a charter school falls short of performance measures included in
  374  the approved charter, the sponsor shall report such shortcomings
  375  to the Department of Education.
  376         g. The sponsor shall not be liable for civil damages under
  377  state law for personal injury, property damage, or death
  378  resulting from an act or omission of an officer, employee,
  379  agent, or governing body of the charter school.
  380         h. The sponsor shall not be liable for civil damages under
  381  state law for any employment actions taken by an officer,
  382  employee, agent, or governing body of the charter school.
  383         i. The sponsor’s duties to monitor the charter school shall
  384  not constitute the basis for a private cause of action.
  385         j. The sponsor shall not impose additional reporting
  386  requirements on a charter school without providing reasonable
  387  and specific justification in writing to the charter school.
  388         2. Immunity for the sponsor of a charter school under
  389  subparagraph 1. applies only with respect to acts or omissions
  390  not under the sponsor’s direct authority as described in this
  391  section.
  392         3. Nothing contained in This paragraph does not waive shall
  393  be considered a waiver of sovereign immunity by a district
  394  school board’s sovereign immunity board.
  395         4. A community college may work with the school district or
  396  school districts in its designated service area to develop
  397  charter schools that offer secondary education. These charter
  398  schools must include an option for students to receive an
  399  associate degree upon high school graduation. District school
  400  boards shall cooperate with and assist the community college on
  401  the charter application. Community college applications for
  402  charter schools are not subject to the time deadlines outlined
  403  in subsection (6) and may be approved by the district school
  404  board at any time during the year. Community colleges may shall
  405  not report FTE for any students who receive FTE funding through
  406  the Florida Education Finance Program.
  407         (6) APPLICATION PROCESS AND REVIEW.—Charter school
  408  applications are subject to the following requirements:
  409         (a) A person or entity wishing to open a charter school
  410  shall prepare and submit an application on a model application
  411  form prepared by the Department of Education which that:
  412         1. Demonstrates how the school will use the guiding
  413  principles and meet the statutorily defined purpose of a charter
  414  school.
  415         2. Provides a detailed curriculum plan that illustrates how
  416  students will be provided services to attain the Sunshine State
  417  Standards.
  418         3. Contains goals and objectives for improving student
  419  learning and measuring that improvement. These goals and
  420  objectives must indicate how much academic improvement students
  421  are expected to show each year, how success will be evaluated,
  422  and the specific results to be attained through instruction.
  423         4. Describes the reading curriculum and differentiated
  424  strategies that will be used for students reading at grade level
  425  or higher and a separate curriculum and strategies for students
  426  who are reading below grade level. A sponsor shall deny a
  427  charter if the school does not propose a reading curriculum that
  428  is consistent with effective teaching strategies that are
  429  grounded in scientifically based reading research.
  430         5. Contains an annual financial plan for each year
  431  requested by the charter for operation of the school for up to 5
  432  years. This plan must contain anticipated fund balances based on
  433  revenue projections, a spending plan based on projected revenues
  434  and expenses, and a description of controls that will safeguard
  435  finances and projected enrollment trends.
  436         6.Documents that the applicant has participated in the
  437  training required in subparagraph (g)2. A sponsor may require an
  438  applicant to provide additional information as an addendum to
  439  the charter school application described in this paragraph.
  440         (b) A sponsor shall receive and review all applications for
  441  a charter school using an evaluation instrument developed by the
  442  Department of Education. Beginning with the 2007-2008 school
  443  year, a sponsor shall receive and consider charter school
  444  applications received on or before August 1 of each calendar
  445  year for charter schools to be opened at the beginning of the
  446  school district’s next school year, or to be opened at a time
  447  agreed to by the applicant and the sponsor. A sponsor may
  448  receive applications later than this date if it chooses. A
  449  sponsor may not charge an applicant for a charter any fee for
  450  the processing or consideration of an application, and a sponsor
  451  may not base its consideration or approval of an application
  452  upon the promise of future payment of any kind.
  453         1. In order to facilitate an accurate budget projection
  454  process, a sponsor shall be held harmless for FTE students who
  455  are not included in the FTE projection due to approval of
  456  charter school applications after the FTE projection deadline.
  457  In a further effort to facilitate an accurate budget projection,
  458  within 15 calendar days after receipt of a charter school
  459  application, a sponsor shall report to the Department of
  460  Education the name of the applicant entity, the proposed charter
  461  school location, and its projected FTE.
  462         2. In order to ensure fiscal responsibility, an application
  463  for a charter school shall include a full accounting of expected
  464  assets, a projection of expected sources and amounts of income,
  465  including income derived from projected student enrollments and
  466  from community support, and an expense projection that includes
  467  full accounting of the costs of operation, including start-up
  468  costs.
  469         3. A sponsor shall by a majority vote approve or deny an
  470  application no later than 60 calendar days after the application
  471  is received, unless the sponsor and the applicant mutually agree
  472  in writing to temporarily postpone the vote to a specific date,
  473  at which time the sponsor shall by a majority vote approve or
  474  deny the application. If the sponsor fails to act on the
  475  application, an applicant may appeal to the State Board of
  476  Education as provided in paragraph (c). If an application is
  477  denied, the sponsor shall, within 10 calendar days after such
  478  denial, articulate in writing the specific reasons, based upon
  479  good cause, supporting its denial of the charter application and
  480  shall provide the letter of denial and supporting documentation
  481  to the applicant and to the Department of Education supporting
  482  those reasons.
  483         4. For budget projection purposes, the sponsor shall report
  484  to the Department of Education the approval or denial of a
  485  charter application within 10 calendar days after such approval
  486  or denial. In the event of approval, the report to the
  487  Department of Education shall include the final projected FTE
  488  for the approved charter school.
  489         5. Upon approval of a charter application, the initial
  490  startup shall commence with the beginning of the public school
  491  calendar for the district in which the charter is granted unless
  492  the sponsor allows a waiver of this subparagraph provision for
  493  good cause.
  494         (g)1. The Department of Education shall offer or arrange
  495  for training and technical assistance to charter school
  496  applicants in developing business plans and estimating costs and
  497  income. This assistance shall address estimating startup costs,
  498  projecting enrollment, and identifying the types and amounts of
  499  state and federal financial assistance the charter school may
  500  will be eligible to receive. The department may provide other
  501  technical assistance to an applicant upon written request.
  502         2.A charter school applicant must participate in the
  503  training provided by the Department of Education before filing
  504  an application. However, a sponsor may require the charter
  505  school applicant to attend training provided by the sponsor in
  506  lieu of the department’s training if the sponsor’s training
  507  standards meet or exceed the standards developed by the
  508  Department of Education. The training shall include instruction
  509  in accurate financial planning and good business practices. If
  510  the applicant is a management company or other nonprofit
  511  organization, the charter school principal and the chief
  512  financial officer or his or her equivalent must also participate
  513  in the training.
  514         (7) CHARTER.—The major issues involving the operation of a
  515  charter school shall be considered in advance and written into
  516  the charter. The charter shall be signed by the governing body
  517  of the charter school and the sponsor, following a public
  518  hearing to ensure community input.
  519         (a) The charter shall address, and criteria for approval of
  520  the charter shall be based on:
  521         1. The school’s mission, the students to be served, and the
  522  ages and grades to be included.
  523         2. The focus of the curriculum, the instructional methods
  524  to be used, any distinctive instructional techniques to be
  525  employed, and identification and acquisition of appropriate
  526  technologies needed to improve educational and administrative
  527  performance which include a means for promoting safe, ethical,
  528  and appropriate uses of technology which comply with legal and
  529  professional standards. The charter shall ensure that reading is
  530  a primary focus of the curriculum and that resources are
  531  provided to identify and provide specialized instruction for
  532  students who are reading below grade level. The curriculum and
  533  instructional strategies for reading must be consistent with the
  534  Sunshine State Standards and grounded in scientifically based
  535  reading research.
  536         3. The current incoming baseline standard of student
  537  academic achievement, the outcomes to be achieved, and the
  538  method of measurement that will be used. The criteria listed in
  539  this subparagraph shall include a detailed description for each
  540  of the following:
  541         a. How the baseline student academic achievement levels and
  542  prior rates of academic progress will be established.
  543         b. How these baseline rates will be compared to rates of
  544  academic progress achieved by these same students while
  545  attending the charter school.
  546         c. To the extent possible, how these rates of progress will
  547  be evaluated and compared with rates of progress of other
  548  closely comparable student populations.
  549  
  550  The district school board is required to provide academic
  551  student performance data to charter schools for each of their
  552  students coming from the district school system, as well as
  553  rates of academic progress of comparable student populations in
  554  the district school system.
  555         4. The methods used to identify the educational strengths
  556  and needs of students and how well educational goals and
  557  performance standards are met by students attending the charter
  558  school. Included in The methods shall provide is a means for the
  559  charter school to ensure accountability to its constituents by
  560  analyzing student performance data and by evaluating the
  561  effectiveness and efficiency of its major educational programs.
  562  Students in charter schools shall, at a minimum, participate in
  563  the statewide assessment program created under s. 1008.22.
  564         5. In secondary charter schools, a method for determining
  565  that a student has satisfied the requirements for graduation in
  566  s. 1003.43.
  567         6. A method for resolving conflicts between the governing
  568  body of the charter school and the sponsor.
  569         7. The admissions procedures and dismissal procedures,
  570  including the school’s code of student conduct.
  571         8. The ways by which the school will achieve a
  572  racial/ethnic balance reflective of the community it serves or
  573  within the racial/ethnic range of other public schools in the
  574  same school district.
  575         9. The financial and administrative management of the
  576  school, including a reasonable demonstration of the professional
  577  experience or competence of those individuals or organizations
  578  applying to operate the charter school or those hired or
  579  retained to perform such professional services and the
  580  description of clearly delineated responsibilities and the
  581  policies and practices needed to effectively manage the charter
  582  school. A description of internal audit procedures and
  583  establishment of controls to ensure that financial resources are
  584  properly managed must be included. Both public sector and
  585  private sector professional experience shall be equally valid in
  586  such a consideration.
  587         10. The asset and liability projections required in the
  588  application which are incorporated into the charter and which
  589  shall be compared with information provided in the annual report
  590  of the charter school. The charter shall ensure that, if a
  591  charter school internal audit or annual financial audit reveals
  592  a state of financial emergency as defined in s. 218.503 or
  593  deficit financial position, the auditors are required to notify
  594  the charter school governing board, the sponsor, and the
  595  Department of Education. The internal auditor shall report such
  596  findings in the form of an exit interview to the principal or
  597  the principal administrator of the charter school and the chair
  598  of the governing board within 7 working days after finding the
  599  state of financial emergency or deficit position. A final report
  600  shall be provided to the entire governing board, the sponsor,
  601  and the Department of Education within 14 working days after the
  602  exit interview. When a charter school is in a state of financial
  603  emergency, the charter school shall file a detailed financial
  604  recovery plan with the sponsor. The department, with the
  605  involvement of both sponsors and charter schools, shall
  606  establish guidelines for developing such plans.
  607         11. A description of procedures that identify various risks
  608  and provide for a comprehensive approach to reduce the impact of
  609  losses; plans to ensure the safety and security of students and
  610  staff; plans to identify, minimize, and protect others from
  611  violent or disruptive student behavior; and the manner in which
  612  the school will be insured, including whether or not the school
  613  will be required to have liability insurance, and, if so, the
  614  terms and conditions thereof and the amounts of coverage.
  615         12. The term of the charter which shall provide for
  616  cancellation of the charter if insufficient progress has been
  617  made in attaining the student achievement objectives of the
  618  charter and if it is not likely that such objectives can be
  619  achieved before expiration of the charter. The initial term of a
  620  charter shall be for 4 or 5 years. In order to facilitate access
  621  to long-term financial resources for charter school
  622  construction, charter schools that are operated by a
  623  municipality or other public entity as provided by law are
  624  eligible for up to a 15-year charter, subject to approval by the
  625  district school board. A charter lab school is eligible for a
  626  charter for a term of up to 15 years. In addition, to facilitate
  627  access to long-term financial resources for charter school
  628  construction, charter schools that are operated by a private,
  629  not-for-profit, s. 501(c)(3) status corporation are eligible for
  630  up to a 15-year charter, subject to approval by the district
  631  school board. Such long-term charters remain subject to annual
  632  review and may be terminated during the term of the charter, but
  633  only according to the provisions set forth in subsection (8).
  634         13. The facilities to be used and their location.
  635         14. The qualifications to be required of the teachers and
  636  the potential strategies used to recruit, hire, train, and
  637  retain qualified staff to achieve best value.
  638         15. The governance structure of the school, including the
  639  status of the charter school as a public or private employer as
  640  required in paragraph (12)(i).
  641         16. A timetable for implementing the charter which
  642  addresses the implementation of each element thereof and the
  643  date by which the charter shall be awarded in order to meet this
  644  timetable.
  645         17. In the case of an existing public school that is being
  646  converted to charter status, alternative arrangements for
  647  current students who choose not to attend the charter school and
  648  for current teachers who choose not to teach in the charter
  649  school after conversion in accordance with the existing
  650  collective bargaining agreement or district school board rule in
  651  the absence of a collective bargaining agreement. However,
  652  alternative arrangements shall not be required for current
  653  teachers who choose not to teach in a charter lab school, except
  654  as authorized by the employment policies of the state university
  655  which grants the charter to the lab school.
  656         18.Full disclosure of the identity of all relatives
  657  employed by the charter school who are related to the charter
  658  school owner, president, chairperson of the governing board of
  659  directors, superintendent, governing board member, principal,
  660  assistant principal, or any other person employed by the charter
  661  school who has equivalent decisionmaking authority. For the
  662  purpose of this subparagraph, the term “relative” means father,
  663  mother, son, daughter, brother, sister, uncle, aunt, first
  664  cousin, nephew, niece, husband, wife, father-in-law, mother-in
  665  law, son-in-law, daughter-in-law, brother-in-law, sister-in-law,
  666  stepfather, stepmother, stepson, stepdaughter, stepbrother,
  667  stepsister, half brother, or half sister.
  668         (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.—
  669         (d) A charter may be terminated immediately if the sponsor
  670  determines that good cause has been shown or if the health,
  671  safety, or welfare of the students is threatened. The sponsor’s
  672  determination is not subject to an informal hearing under
  673  paragraph (b) or pursuant to chapter 120. The sponsor shall
  674  notify in writing the charter school’s governing body, the
  675  charter school principal, and the department if a charter is
  676  immediately terminated. The sponsor shall clearly identify the
  677  specific issues that resulted in the immediate termination and
  678  provide evidence of prior notification of issues resulting in
  679  the immediate termination when appropriate. The school district
  680  in which the charter school is located shall assume operation of
  681  the school under these circumstances. The charter school’s
  682  governing board may, within 30 days after receiving the
  683  sponsor’s decision to terminate the charter, appeal the decision
  684  pursuant to the procedure established in subsection (6).
  685         (9) CHARTER SCHOOL REQUIREMENTS.—
  686         (g)A charter school shall provide for an annual financial
  687  audit in accordance with s. 218.39. Financial audits that reveal
  688  a state of financial emergency as defined in s. 218.503 and are
  689  conducted by a certified public accountant or auditor in
  690  accordance with s. 218.39 shall be provided to the governing
  691  body of the charter school within 7 working days after finding
  692  that a state of financial emergency exists. When a charter
  693  school is found to be in a state of financial emergency by a
  694  certified public accountant or auditor, the charter school must
  695  file a detailed financial recovery plan with the sponsor within
  696  30 days after receipt of the audit.
  697         (g)(h) In order to provide financial information that is
  698  comparable to that reported for other public schools, charter
  699  schools are to maintain all financial records that which
  700  constitute their accounting system:
  701         1. In accordance with the accounts and codes prescribed in
  702  the most recent issuance of the publication titled “Financial
  703  and Program Cost Accounting and Reporting for Florida Schools”;
  704  or
  705         2. At the discretion of the charter school governing board,
  706  a charter school may elect to follow generally accepted
  707  accounting standards for not-for-profit organizations, but must
  708  reformat this information for reporting according to this
  709  paragraph.
  710  
  711  Charter schools shall provide annual financial report and
  712  program cost report information in the state-required formats
  713  for inclusion in district reporting in compliance with s.
  714  1011.60(1). Charter schools that are operated by a municipality
  715  or are a component unit of a parent nonprofit organization may
  716  use the accounting system of the municipality or the parent but
  717  must reformat this information for reporting according to this
  718  paragraph. A charter school shall provide a monthly financial
  719  statement to the sponsor. The monthly financial statement shall
  720  be in a form prescribed by the Department of Education.
  721         (h)(i) The governing board of the charter school shall
  722  annually adopt and maintain an operating budget.
  723         (i)(j) The governing body of the charter school shall
  724  exercise continuing oversight over charter school operations.
  725         (j)(k) The governing body of the charter school shall be
  726  responsible for:
  727         1. Ensuring that the charter school has retained the
  728  services of a certified public accountant or auditor for the
  729  annual financial audit, pursuant to s. 1002.345(2) paragraph
  730  (g), who shall submit the report to the governing body.
  731         2. Reviewing and approving the audit report, including
  732  audit findings and recommendations for the financial recovery
  733  plan.
  734         3.a.Performing the duties in s. 1002.345, including
  735  monitoring a corrective action plan.
  736         b. Monitoring a financial recovery plan in order to ensure
  737  compliance.
  738         4. Participating in governance training approved by the
  739  department which that must include government in the sunshine,
  740  conflicts of interest, ethics, and financial responsibility.
  741         (k)(l) The governing body of the charter school shall
  742  report its progress annually to its sponsor, which shall forward
  743  the report to the Commissioner of Education at the same time as
  744  other annual school accountability reports. The Department of
  745  Education shall develop a uniform, online annual accountability
  746  report to be completed by charter schools. This report shall be
  747  easy to utilize and contain demographic information, student
  748  performance data, and financial accountability information. A
  749  charter school shall not be required to provide information and
  750  data that is duplicative and already in the possession of the
  751  department. The Department of Education shall include in its
  752  compilation a notation if a school failed to file its report by
  753  the deadline established by the department. The report shall
  754  include at least the following components:
  755         1. Student achievement performance data, including the
  756  information required for the annual school report and the
  757  education accountability system governed by ss. 1008.31 and
  758  1008.345. Charter schools are subject to the same accountability
  759  requirements as other public schools, including reports of
  760  student achievement information that links baseline student data
  761  to the school’s performance projections identified in the
  762  charter. The charter school shall identify reasons for any
  763  difference between projected and actual student performance.
  764         2. Financial status of the charter school which must
  765  include revenues and expenditures at a level of detail that
  766  allows for analysis of the charter school’s ability to meet
  767  financial obligations and timely repayment of debt.
  768         3. Documentation of the facilities in current use and any
  769  planned facilities for use by the charter school for instruction
  770  of students, administrative functions, or investment purposes.
  771         4. Descriptive information about the charter school’s
  772  personnel, including salary and benefit levels of charter school
  773  employees, the proportion of instructional personnel who hold
  774  professional or temporary certificates, and the proportion of
  775  instructional personnel teaching in-field or out-of-field.
  776         (l)(m) A charter school shall not levy taxes or issue bonds
  777  secured by tax revenues.
  778         (m)(n) A charter school shall provide instruction for at
  779  least the number of days required by law for other public
  780  schools, and may provide instruction for additional days.
  781         (n)(o) The director and a representative of the governing
  782  body of a charter school that has received a school grade of “D”
  783  under s. 1008.34(2) shall appear before the sponsor or the
  784  sponsor’s staff at least once a year to present information
  785  concerning each contract component having noted deficiencies.
  786  The sponsor shall communicate at the meeting, and in writing to
  787  the director, the services provided to the school to help the
  788  school address its deficiencies.
  789         (o)(p) Upon notification that a charter school receives a
  790  school grade of “D” for 2 consecutive years or a school grade of
  791  “F” under s. 1008.34(2), the charter school sponsor or the
  792  sponsor’s staff shall require the director and a representative
  793  of the governing body to submit to the sponsor for approval a
  794  school improvement plan to raise student achievement and to
  795  implement the plan. The sponsor has the authority to approve a
  796  school improvement plan that the charter school will implement
  797  in the following school year. The sponsor may also consider the
  798  State Board of Education’s recommended action pursuant to s.
  799  1008.33(1) as part of the school improvement plan. The
  800  Department of Education shall offer technical assistance and
  801  training to the charter school and its governing body and
  802  establish guidelines for developing, submitting, and approving
  803  such plans.
  804         1. If the charter school fails to improve its student
  805  performance from the year immediately prior to the
  806  implementation of the school improvement plan, the sponsor shall
  807  place the charter school on probation and shall require the
  808  charter school governing body to take one of the following
  809  corrective actions:
  810         a. Contract for the educational services of the charter
  811  school;
  812         b. Reorganize the school at the end of the school year
  813  under a new director or principal who is authorized to hire new
  814  staff and implement a plan that addresses the causes of
  815  inadequate progress; or
  816         c. Reconstitute the charter school.
  817         2. A charter school that is placed on probation shall
  818  continue the corrective actions required under subparagraph 1.
  819  until the charter school improves its student performance from
  820  the year prior to the implementation of the school improvement
  821  plan.
  822         3. Notwithstanding any provision of this paragraph, the
  823  sponsor may terminate the charter at any time pursuant to the
  824  provisions of subsection (8).
  825         (p)(q) The director and a representative of the governing
  826  body of a graded charter school that has submitted a school
  827  improvement plan or has been placed on probation under paragraph
  828  (o) (p) shall appear before the sponsor or the sponsor’s staff
  829  at least once a year to present information regarding the
  830  corrective strategies that are being implemented by the school
  831  pursuant to the school improvement plan. The sponsor shall
  832  communicate at the meeting, and in writing to the director, the
  833  services provided to the school to help the school address its
  834  deficiencies.
  835         (10) ELIGIBLE STUDENTS.—
  836         (a) A charter school shall be open to any student covered
  837  in an interdistrict agreement or residing in the school district
  838  in which the charter school is located; however, in the case of
  839  a charter lab school, the charter lab school shall be open to
  840  any student eligible to attend the lab school as provided in s.
  841  1002.32 or who resides in the school district in which the
  842  charter lab school is located. Any eligible student shall be
  843  allowed interdistrict transfer to attend a charter school when
  844  based on good cause. Good cause shall include, but is not
  845  limited to, geographic proximity to a charter school in a
  846  neighboring school district.
  847         (17) FUNDING.—Students enrolled in a charter school,
  848  regardless of the sponsorship, shall be funded as if they are in
  849  a basic program or a special program, the same as students
  850  enrolled in other public schools in the school district. Funding
  851  for a charter lab school shall be as provided in s. 1002.32.
  852         (d) Charter schools shall be included by the Department of
  853  Education and the district school board in requests for federal
  854  stimulus funds in the same manner as district school board
  855  operated public schools, including Title I and IDEA funds and
  856  shall be entitled to receive such funds. Charter schools are
  857  eligible to participate in federal competitive grants that are
  858  available as part of the federal stimulus funds.
  859         (e)(d) District school boards shall make timely and
  860  efficient payment and reimbursement to charter schools,
  861  including processing paperwork required to access special state
  862  and federal funding for which they may be eligible. The district
  863  school board may distribute funds to a charter school for up to
  864  3 months based on the projected full-time equivalent student
  865  membership of the charter school. Thereafter, the results of
  866  full-time equivalent student membership surveys shall be used in
  867  adjusting the amount of funds distributed monthly to the charter
  868  school for the remainder of the fiscal year. The payment shall
  869  be issued no later than 10 working days after the district
  870  school board receives a distribution of state or federal funds.
  871  If a warrant for payment is not issued within 10 working days
  872  after receipt of funding by the district school board, the
  873  school district shall pay to the charter school, in addition to
  874  the amount of the scheduled disbursement, interest at a rate of
  875  1 percent per month calculated on a daily basis on the unpaid
  876  balance from the expiration of the 10 working days until such
  877  time as the warrant is issued.
  878         (20) SERVICES.—
  879         (a) A sponsor shall provide certain administrative and
  880  educational services to charter schools. These services shall
  881  include contract management services; full-time equivalent and
  882  data reporting services; exceptional student education
  883  administration services; services related to eligibility and
  884  reporting duties required to ensure that school lunch services
  885  under the federal lunch program, consistent with the needs of
  886  the charter school, are provided by the school district at the
  887  request of the charter school, that any funds due to the charter
  888  school under the federal lunch program be paid to the charter
  889  school as soon as the charter school begins serving food under
  890  the federal lunch program, and that the charter school is paid
  891  at the same time and in the same manner under the federal lunch
  892  program as other public schools serviced by the sponsor or the
  893  school district; test administration services, including payment
  894  of the costs of state-required or district-required student
  895  assessments; processing of teacher certificate data services;
  896  and information services, including equal access to student
  897  information systems that are used by public schools in the
  898  district in which the charter school is located. Student
  899  performance data for each student in a charter school,
  900  including, but not limited to, FCAT scores, standardized test
  901  scores, previous public school student report cards, and student
  902  performance measures, shall be provided by the sponsor to a
  903  charter school in the same manner provided to other public
  904  schools in the district. A total administrative fee for the
  905  provision of such services shall be calculated based upon up to
  906  5 percent of the available funds defined in paragraph (17)(b)
  907  for all students. However, a sponsor may only withhold up to a
  908  5-percent administrative fee for enrollment for up to and
  909  including 500 students. For charter schools with a population of
  910  501 or more students, the difference between the total
  911  administrative fee calculation and the amount of the
  912  administrative fee withheld may only be used for capital outlay
  913  purposes specified in s. 1013.62(2). Each charter school shall
  914  receive 100 percent of the funds awarded to that school pursuant
  915  to s. 1012.225. Sponsors shall not charge charter schools any
  916  additional fees or surcharges for administrative and educational
  917  services in addition to the maximum 5-percent administrative fee
  918  withheld pursuant to this paragraph.
  919         (21) PUBLIC INFORMATION ON CHARTER SCHOOLS.—
  920         (a) The Department of Education shall provide information
  921  to the public, directly and through sponsors, both on how to
  922  form and operate a charter school and on how to enroll in a
  923  charter school schools once it is they are created. This
  924  information shall include a standard application format, charter
  925  format, evaluation instrument, and charter renewal format, which
  926  shall include the information specified in subsection (7) and
  927  shall be developed by consulting and negotiating with both
  928  school districts and charter schools before implementation. The
  929  charter and charter renewal These formats shall be used as
  930  guidelines by charter school sponsors.
  931         (b)1.The Department of Education shall report student
  932  assessment data pursuant to s. 1008.34(3)(c) which is reported
  933  to schools that receive a school grade or student assessment
  934  data pursuant to s. 1008.341(3) which is reported to alternative
  935  schools that receive a school improvement rating to each charter
  936  school that:
  937         a.Does not receive a school grade pursuant to s. 1008.34
  938  or a school improvement rating pursuant to s. 1008.341; and
  939         b.Serves at least 10 students who are tested on the
  940  statewide assessment test pursuant to s. 1008.22.
  941         2.The charter school shall report the information in
  942  subparagraph 1. to each parent of a student at the charter
  943  school, the parent of a child on a waiting list for the charter
  944  school, the district in which the charter school is located, and
  945  the governing board of the charter school. This paragraph does
  946  not abrogate the provisions of s. 1002.22, relating to student
  947  records, or the requirements of 20 U.S.C. s. 1232g, the Family
  948  Educational Rights and Privacy Act.
  949         3.a.Pursuant to this paragraph, the Department of
  950  Education shall compare the charter school student performance
  951  data for each charter school in subparagraph 1. with the student
  952  performance data in traditional public schools in the district
  953  in which the charter school is located and other charter schools
  954  in the state. For alternative charter schools, the department
  955  shall compare the student performance data described in this
  956  paragraph with all alternative schools in the state. The
  957  comparative data shall be provided by the following grade
  958  groupings:
  959         (I)Grades 3 through 5;
  960         (II)Grades 6 through 8; and
  961         (III)Grades 9 through 11.
  962         b.Each charter school shall provide the information
  963  specified in this paragraph on its Internet website and also
  964  provide notice to the public at large in a manner provided by
  965  the rules of the State Board of Education. The State Board of
  966  Education shall adopt rules to administer the notice
  967  requirements of this subparagraph pursuant to ss. 120.536(1) and
  968  120.54. The website shall include, through links or actual
  969  content, other information related to school performance.
  970         (23) ANALYSIS OF CHARTER SCHOOL PERFORMANCE.—Upon receipt
  971  of the annual report required by paragraph (9)(k) (9)(l), the
  972  Department of Education shall provide to the State Board of
  973  Education, the Commissioner of Education, the Governor, the
  974  President of the Senate, and the Speaker of the House of
  975  Representatives an analysis and comparison of the overall
  976  performance of charter school students, to include all students
  977  whose scores are counted as part of the statewide assessment
  978  program, versus comparable public school students in the
  979  district as determined by the statewide assessment program
  980  currently administered in the school district, and other
  981  assessments administered pursuant to s. 1008.22(3).
  982         (24)RESTRICTION ON EMPLOYMENT OF RELATIVES.—
  983         (a)This subsection applies to charter school personnel in
  984  a charter school operated by a private entity. As used in this
  985  subsection, the term:
  986         1.“Charter school personnel” means a charter school owner,
  987  president, chairperson of the governing board of directors,
  988  superintendent, governing board member, principal, assistant
  989  principal, or any other person employed by the charter school
  990  who has equivalent decisionmaking authority and in whom is
  991  vested the authority, or to whom the authority has been
  992  delegated, to appoint, employ, promote, or advance individuals
  993  or to recommend individuals for appointment, employment,
  994  promotion, or advancement in connection with employment in a
  995  charter school, including the authority as a member of a
  996  governing body of a charter school to vote on the appointment,
  997  employment, promotion, or advancement of individuals.
  998         2.“Relative” means father, mother, son, daughter, brother,
  999  sister, uncle, aunt, first cousin, nephew, niece, husband, wife,
 1000  father-in-law, mother-in-law, son-in-law, daughter-in-law,
 1001  brother-in-law, sister-in-law, stepfather, stepmother, stepson,
 1002  stepdaughter, stepbrother, stepsister, half brother, or half
 1003  sister.
 1004         (b)Charter school personnel may not appoint, employ,
 1005  promote, or advance, or advocate for appointment, employment,
 1006  promotion, or advancement, in or to a position in the charter
 1007  school in which the personnel are serving or over which the
 1008  personnel exercises jurisdiction or control any individual who
 1009  is a relative. An individual may not be appointed, employed,
 1010  promoted, or advanced in or to a position in a charter school if
 1011  such appointment, employment, promotion, or advancement has been
 1012  advocated by charter school personnel who serve in or exercise
 1013  jurisdiction or control over the charter school and who is a
 1014  relative of the individual or if such appointment, employment,
 1015  promotion, or advancement is made by the governing board of
 1016  which a relative of the individual is a member.
 1017         (c)The approval of budgets does not constitute
 1018  “jurisdiction or control” for the purposes of this subsection.
 1019  
 1020  Charter school personnel in schools operated by a municipality
 1021  or other public entity are subject to s. 112.3135.
 1022         (25)STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE.—
 1023         (a)A member of a governing board of a charter school,
 1024  including a charter school operated by a private entity, is
 1025  subject to ss. 112.313(2), (3), (7), and (12) and 112.3143(3).
 1026         (b)A member of a governing board of a charter school
 1027  operated by a municipality or other public entity is subject to
 1028  s. 112.3144, which relates to the disclosure of financial
 1029  interests.
 1030         (26)(24) RULEMAKING.—The Department of Education, after
 1031  consultation with school districts and charter school directors,
 1032  shall recommend that the State Board of Education adopt rules to
 1033  implement specific subsections of this section. Such rules shall
 1034  require minimum paperwork and shall not limit charter school
 1035  flexibility authorized by statute. The State Board of Education
 1036  shall adopt rules, pursuant to ss. 120.536(1) and 120.54, to
 1037  implement a charter model application form, evaluation
 1038  instrument, and charter and charter renewal formats in
 1039  accordance with this section.
 1040         Section 8. Subsections (4) and (5), paragraphs (d) and (f)
 1041  of subsection (6), paragraph (c) of subsection (10), paragraph
 1042  (f) of subsection (11), and subsections (13) and (18) of section
 1043  1002.34, Florida Statutes, are amended to read:
 1044         1002.34 Charter technical career centers.—
 1045         (4) CHARTER.—A sponsor may designate centers as provided in
 1046  this section. An application to establish a center may be
 1047  submitted by a sponsor or another organization that is
 1048  determined, by rule of the State Board of Education, to be
 1049  appropriate. However, an independent school is not eligible for
 1050  status as a center. The charter must be signed by the governing
 1051  body of the center and the sponsor, and must be approved by the
 1052  district school board and community college board of trustees in
 1053  whose geographic region the facility is located. If a charter
 1054  technical career center is established by the conversion to
 1055  charter status of a public technical center formerly governed by
 1056  a district school board, the charter status of that center takes
 1057  precedence in any question of governance. The governance of the
 1058  center or of any program within the center remains with its
 1059  board of directors unless the board agrees to a change in
 1060  governance or its charter is revoked as provided in subsection
 1061  (15). Such a conversion charter technical career center is not
 1062  affected by a change in the governance of public technical
 1063  centers or of programs within other centers that are or have
 1064  been governed by district school boards. A charter technical
 1065  career center, or any program within such a center, that was
 1066  governed by a district school board and transferred to a
 1067  community college prior to the effective date of this act is not
 1068  affected by this provision. An applicant who wishes to establish
 1069  a center must submit to the district school board or community
 1070  college board of trustees, or a consortium of one or more of
 1071  each, an application on a form developed by the Department of
 1072  Education which that includes:
 1073         (a) The name of the proposed center.
 1074         (b) The proposed structure of the center, including a list
 1075  of proposed members of the board of directors or a description
 1076  of the qualifications for and method of their appointment or
 1077  election.
 1078         (c) The workforce development goals of the center, the
 1079  curriculum to be offered, and the outcomes and the methods of
 1080  assessing the extent to which the outcomes are met.
 1081         (d) The admissions policy and criteria for evaluating the
 1082  admission of students.
 1083         (e) A description of the staff responsibilities and the
 1084  proposed qualifications of the teaching staff.
 1085         (f) A description of the procedures to be implemented to
 1086  ensure significant involvement of representatives of business
 1087  and industry in the operation of the center.
 1088         (g) A method for determining whether a student has
 1089  satisfied the requirements for graduation specified in s.
 1090  1003.43 and for completion of a postsecondary certificate or
 1091  degree.
 1092         (h) A method for granting secondary and postsecondary
 1093  diplomas, certificates, and degrees.
 1094         (i) A description of and address for the physical facility
 1095  in which the center will be located.
 1096         (j) A method for of resolving conflicts between the
 1097  governing body of the center and the sponsor and between
 1098  consortium members, if applicable.
 1099         (k) A method for reporting student data as required by law
 1100  and rule.
 1101         (l)A statement that the applicant has participated in the
 1102  training provided by the Department of Education.
 1103         (m)The identity of all relatives employed by the charter
 1104  technical career center who are related to the center owner,
 1105  president, chairperson of the governing board of directors,
 1106  superintendent, governing board member, principal, assistant
 1107  principal, or any other person employed by the center who has
 1108  equivalent decisionmaking authority. As used in this paragraph,
 1109  the term “relative” means father, mother, son, daughter,
 1110  brother, sister, uncle, aunt, first cousin, nephew, niece,
 1111  husband, wife, father-in-law, mother-in-law, son-in-law,
 1112  daughter-in-law, brother-in-law, sister-in-law, stepfather,
 1113  stepmother, stepson, stepdaughter, stepbrother, stepsister, half
 1114  brother, or half sister.
 1115         (m)(l) Other information required by the district school
 1116  board or community college board of trustees.
 1117  
 1118  Students at a center must meet the same testing and academic
 1119  performance standards as those established by law and rule for
 1120  students at public schools and public technical centers. The
 1121  students must also meet any additional assessment indicators
 1122  that are included within the charter approved by the district
 1123  school board or community college board of trustees.
 1124         (5) APPLICATION.—An application to establish a center must
 1125  be submitted by February 1 of the year preceding the school year
 1126  in which the center will begin operation. The sponsor must
 1127  review the application using an evaluation instrument developed
 1128  by the Department of Education and make a final decision on
 1129  whether to approve the application and grant the charter by
 1130  March 1, and may condition the granting of a charter on the
 1131  center’s taking certain actions or maintaining certain
 1132  conditions. Such actions and conditions must be provided to the
 1133  applicant in writing. The district school board or community
 1134  college board of trustees is not required to issue a charter to
 1135  any person.
 1136         (6) SPONSOR.—A district school board or community college
 1137  board of trustees or a consortium of one or more of each may
 1138  sponsor a center in the county in which the board has
 1139  jurisdiction.
 1140         (d)1.The Department of Education shall offer or arrange
 1141  for training and technical assistance to applicants in
 1142  developing business plans and estimating costs and income. This
 1143  assistance shall address estimating startup costs, projecting
 1144  enrollment, and identifying the types and amounts of state and
 1145  federal financial assistance the center may be eligible to
 1146  receive. The training shall include instruction in accurate
 1147  financial planning and good business practices.
 1148         2.An applicant must participate in the training provided
 1149  by the Department of Education before filing an application. The
 1150  Department of Education may provide technical assistance to an
 1151  applicant upon written request.
 1152         (f) The sponsor shall monitor and review the center’s
 1153  progress toward charter goals and shall monitor the center’s
 1154  revenues and expenditures. The sponsor shall perform the duties
 1155  provided in s. 1002.345.
 1156         (10) EXEMPTION FROM STATUTES.—
 1157         (c) A center must comply with the antidiscrimination
 1158  provisions in of s. 1000.05 and the provisions in s. 1002.33(24)
 1159  which relate to the employment of relatives.
 1160         (11) FUNDING.—
 1161         (f) A center shall provide for an annual financial audit in
 1162  accordance with s. 218.39. A center shall provide a monthly
 1163  financial statement to the sponsor. The monthly financial
 1164  statement shall be in a form prescribed by the Department of
 1165  Education.
 1166         (13) BOARD OF DIRECTORS AUTHORITY.—The board of directors
 1167  of a center may decide matters relating to the operation of the
 1168  school, including budgeting, curriculum, and operating
 1169  procedures, subject to the center’s charter. The board of
 1170  directors is responsible for performing the duties provided in
 1171  s. 1002.345, including monitoring the corrective action plan.
 1172  The board of directors must comply with s. 1002.33(25).
 1173         (18) RULES.—The State Board of Education shall adopt rules,
 1174  pursuant to ss. 120.536(1) and 120.54 chapter 120, relating to
 1175  the implementation of charter technical career centers,
 1176  including rules to implement a charter model application form
 1177  and an evaluation instrument in accordance with this section.
 1178         Section 9. Section 1002.345, Florida Statutes, is created
 1179  to read:
 1180         1002.345Determination of deteriorating financial
 1181  conditions and financial emergencies for charter schools and
 1182  charter technical career centers.—This section applies to
 1183  charter schools operating pursuant to s. 1002.33 and to charter
 1184  technical career centers operating pursuant to s. 1002.34.
 1185         (1)EXPEDITED REVIEW; REQUIREMENTS.—
 1186         (a)A charter school or a charter technical career center
 1187  is subject to an expedited review by the sponsor if one of the
 1188  following occurs:
 1189         1.Failure to provide for an audit required by s. 218.39.
 1190         2.Failure to comply with reporting requirements pursuant
 1191  to s. 1002.33(9) or s. 1002.34(11)(f) or (14).
 1192         3.A deteriorating financial condition identified through
 1193  an annual audit pursuant to s. 218.39(5) or a monthly financial
 1194  statement pursuant to s. 1002.33(9)(g) or s. 1002.34(11)(f).
 1195  “Deteriorating financial condition” means a circumstance that
 1196  significantly impairs the ability of a charter school or a
 1197  charter technical career center to generate enough revenues to
 1198  meet its expenditures without causing the occurrence of a
 1199  condition described in s. 218.503(1).
 1200         4.Notification pursuant to s. 218.503(2) that one or more
 1201  of the conditions specified in s. 218.503(1) have occurred or
 1202  will occur if action is not taken to assist the charter school
 1203  or charter technical career center.
 1204         (b)A sponsor shall notify the governing board within 7
 1205  business days after one or more of the conditions specified in
 1206  paragraph (a) occur.
 1207         (c)The governing board and the sponsor shall develop a
 1208  corrective action plan and file the plan with the Commissioner
 1209  of Education within 30 business days after notification is
 1210  received as provided in paragraph (b). If the governing board
 1211  and the sponsor are unable to agree on a corrective action plan,
 1212  the Commissioner of Education shall determine the components of
 1213  the plan. The governing board shall implement such plan.
 1214         (d)The governing board shall include the corrective action
 1215  plan and the status of its implementation in the annual progress
 1216  report to the sponsor which is required pursuant to s.
 1217  1002.33(9)(k) or s. 1002.34(14).
 1218         (e)If the governing board fails to implement the
 1219  corrective action plan within 1 year after one or more of the
 1220  conditions specified in paragraph (a) occur, the State Board of
 1221  Education shall prescribe any steps necessary for the charter
 1222  school or the charter technical career center to comply with
 1223  state requirements.
 1224         (f)The chair of the governing board shall annually appear
 1225  before the State Board of Education and report on the
 1226  implementation of the State Board of Education’s requirements
 1227  referenced in paragraph (e).
 1228         (2)FINANCIAL EMERGENCY; REQUIREMENTS.—
 1229         (a)1.If a financial audit conducted by a certified public
 1230  accountant in accordance with s. 218.39 reveals that one or more
 1231  of the conditions in s. 218.503(1) have occurred or will occur
 1232  if action is not taken to assist the charter school or charter
 1233  technical career center, the auditor shall notify the governing
 1234  board of the charter school or charter technical career center,
 1235  as appropriate, the sponsor, and the Commissioner of Education
 1236  within 7 business days after the finding is made.
 1237         2.If the charter school or charter technical career center
 1238  is found to be in a state of financial emergency pursuant to s.
 1239  218.503(4), the charter school or charter technical career
 1240  center shall file a financial recovery plan pursuant to s.
 1241  218.503 with the sponsor and the Commissioner of Education
 1242  within 30 days after being notified by the Commissioner of
 1243  Education that a financial recovery plan is needed.
 1244         (b)The governing board shall include the financial
 1245  recovery plan and the status of its implementation in the annual
 1246  progress report to the sponsor which is required under s.
 1247  1002.33(9)(k) or s. 1002.34(14).
 1248         (3)REPORT.—The Commissioner of Education shall annually
 1249  report to the State Board of Education each charter school and
 1250  charter technical career center that is subject to a financial
 1251  recovery plan or a corrective action plan under this section.
 1252         (4)RULES.—The State Board of Education shall adopt rules
 1253  pursuant to ss. 120.536(1) and 120.54 for developing financial
 1254  recovery and corrective action plans, defining a deteriorating
 1255  financial condition pursuant to subparagraph (1)(a)3., and
 1256  establishing procedures for determining a deteriorating
 1257  financial condition pursuant to subparagraph (1)(a)3. and s.
 1258  218.39(5). In adopting the rules, the State Board of Education
 1259  may obtain technical assistance from the Auditor General.
 1260         (5)TECHNICAL ASSISTANCE.—The Department of Education shall
 1261  provide technical assistance to charter schools, charter
 1262  technical career centers, governing boards, and sponsors in
 1263  developing financial recovery and corrective action plans.
 1264         (6)FAILURE TO CORRECT DEFICIENCIES.—The sponsor may decide
 1265  not to renew or may terminate a charter if the charter school or
 1266  charter technical career center fails to correct the
 1267  deficiencies noted in the corrective action plan within 1 year
 1268  after being notified of the deficiencies or exhibits one or more
 1269  financial emergency conditions specified in s. 218.503 for 2
 1270  consecutive years. This subsection does not affect a sponsor’s
 1271  authority to terminate or not renew a charter pursuant to s.
 1272  1002.33(8).
 1273         Section 10. This act shall take effect July 1, 2009.