Florida Senate - 2015                                    SB 1038
       
       
        
       By Senator Montford
       
       
       
       
       
       3-00813-15                                            20151038__
    1                        A bill to be entitled                      
    2         An act relating to charter schools; creating s.
    3         1002.322, F.S.; providing a short title and purpose of
    4         the act; providing legislative findings; creating s.
    5         1002.323, F.S.; defining terms; creating s. 1002.324,
    6         F.S.; specifying the duties and responsibilities of
    7         the Department of Education with respect to the
    8         issuance of statements of need; requiring the State
    9         Board of Education to adopt certain rules; requiring
   10         the state board to allow stakeholder participation in
   11         rule development; creating s. 1002.325, F.S.;
   12         requiring an applicant to file a letter of intent with
   13         the department before applying for a statement of
   14         need; prescribing required content for a letter of
   15         intent; requiring the department to publish notice of
   16         filing of letters of intent in the Florida
   17         Administrative Register; specifying the content of a
   18         statement of need application; requiring the state
   19         board to adopt a certain rule; establishing procedures
   20         governing the submission and review of applications;
   21         authorizing the department to hold a public hearing
   22         regarding a proposed project under certain
   23         circumstances; authorizing an applicant to submit a
   24         response to a written statement of opposition;
   25         specifying evaluation criteria for applications;
   26         authorizing the department to assess fees on
   27         applications; creating s. 1002.326, F.S.; establishing
   28         procedures for the department to issue or deny
   29         statements of need; requiring publication of the
   30         department’s report and notice of intent; authorizing
   31         specified parties to file a request for an
   32         administrative hearing; requiring the department to
   33         issue a final order within a certain timeframe of an
   34         administrative law judge’s recommended order;
   35         authorizing a party to an administrative hearing to
   36         seek judicial review; authorizing the reviewing court
   37         to award attorney fees and court costs under certain
   38         circumstances; creating s. 1002.327, F.S.; specifying
   39         applicability of the statement of need review process;
   40         authorizing expedited review and exemption from review
   41         under certain circumstances; creating s. 1002.328,
   42         F.S.; authorizing the department to conditionally
   43         issue a statement of need; authorizing a statement
   44         holder to apply to the department for a modification
   45         of conditions; requiring the state board to specify
   46         factors constituting good cause for modification by
   47         rule; authorizing the department to assess a fine
   48         against a noncompliant statement holder; requiring
   49         fine proceeds to be deposited into the State School
   50         Trust Fund; specifying the length of validity for a
   51         statement of need; requiring the department to monitor
   52         the progress of a statement holder; requiring the
   53         department to extend the length of validity for a
   54         statement of need under certain circumstances;
   55         creating s. 1002.3281, F.S.; prohibiting a person from
   56         undertaking a project subject to review without
   57         holding a statement of need; providing a penalty;
   58         creating s. 1002.3282, F.S.; prohibiting the transfer
   59         of a statement of need; providing a penalty; creating
   60         s. 1002.329, F.S.; authorizing the department to seek
   61         injunctive relief; amending s. 1002.33, F.S.;
   62         conforming provisions to changes made by the act;
   63         providing an effective date.
   64          
   65  Be It Enacted by the Legislature of the State of Florida:
   66  
   67         Section 1. Section 1002.322, Florida Statutes, is created
   68  to read:
   69         1002.322 Short title and purpose.—
   70         (1) Sections 1002.322-1002.329 may be cited as the “Charter
   71  School Excellence Act.”
   72         (2) The Legislature finds that:
   73         (a) Section 1, Art. IX of the State Constitution mandates a
   74  “uniform, efficient, safe, secure, and high quality system of
   75  free public schools” in this state. Thus, a uniform and coherent
   76  system of public education which is both equitable and fiscally
   77  efficient is imperative. All charter schools in this state are
   78  public schools and are, therefore, subject to the constitutional
   79  mandate.
   80         (b) Since their inception in 1996, the number of charter
   81  schools in this state grew to more than 615 in the 2013-2014
   82  school year. Charter school enrollment in this state grew to
   83  more than 229,000 students in the 2013-2014 school year. A
   84  charter school can be independently opened and operated by
   85  individuals, a municipality, or a legal entity organized under
   86  the laws of this state. Volunteer governing boards control each
   87  individual charter school, rather than the elected
   88  representatives that compose each district school board.
   89  Duplicative programs in charter schools, which largely mirror
   90  programs available in traditional public schools, serve as a
   91  burden on the already financially strained public school system.
   92  The state’s charter schools should complement, and not
   93  duplicate, the role of the state’s traditional public schools.
   94         (c) The application process for new charter schools is
   95  biased toward encouraging unmitigated growth of the charter
   96  school industry, rather than focusing on the specific needs of
   97  students or the safeguarding of taxpayer dollars.
   98         (d) The lack of transparency and local control over charter
   99  schools has resulted in the inefficient use of taxpayer dollars.
  100  School districts are limited in their ability to intervene in
  101  the management or instruction of an individual charter school,
  102  which has exacerbated the number of charter school failures.
  103  Delaying intervention into a failing charter school’s operation
  104  has repeatedly resulted in the failure of the charter school and
  105  the resulting displacement of students. In many instances,
  106  school districts have been unable to recoup taxpayer dollars
  107  that have been invested in a failed charter school.
  108  Additionally, current standards of performance for charter
  109  schools, compared to the standards applied to traditional public
  110  schools, are inadequate given a charter school’s ability to
  111  target and select particular students for enrollment.
  112         (e) For-profit companies that provide charter schools with
  113  various administrative services can consume a significant
  114  portion of the school’s budget, which ultimately results in less
  115  money going toward student education. Such administrative
  116  services are duplicative of services available through the
  117  school districts and are an inefficient use of taxpayer dollars.
  118         (f) Many charter schools have failed to assume the role
  119  that was originally envisioned for them in the original
  120  authorizing legislation. Instead, many charter schools are
  121  offering the same instructional services offered in traditional
  122  public schools located in the same neighborhood. Unlike many
  123  other states, Florida has not established a maximum cap on the
  124  number of charter schools that are authorized to operate.
  125         (3) The purpose of this act is to develop and implement a
  126  program that requires statements of need for charter schools to
  127  ensure that such schools provide innovative educational services
  128  not provided by traditional public schools in the community; do
  129  not duplicate existing services provided by school districts and
  130  traditional public schools; and are responsible stewards of
  131  taxpayer money.
  132         Section 2. Section 1002.323, Florida Statutes, is created
  133  to read:
  134         1002.323 Definitions.—As used in ss. 1002.322-1002.329, the
  135  term:
  136         (1) “Capital expenditure” means an expenditure, including
  137  an expenditure for a construction project undertaken by a
  138  charter school, which, under generally accepted accounting
  139  principles, is not properly chargeable as an expense of
  140  operation and maintenance, which is made to change the student
  141  enrollment capacity of the charter school, or substantially
  142  change the educational services or grade levels of the charter
  143  school, and which includes the cost of the studies, surveys,
  144  designs, plans, working drawings, specifications, initial
  145  financing costs, and other activities essential to the
  146  acquisition, improvement, expansion, or replacement of the plant
  147  and equipment.
  148         (2) “Charter school” means a school that meets the
  149  requirements of s. 1002.33 and has been issued a statement of
  150  need.
  151         (3) “Commenced construction” means initiation of and
  152  continuous activities beyond site preparation associated with
  153  erecting or modifying a charter school, including procurement of
  154  a building permit, securing an executed owner/contractor
  155  agreement or an irrevocable or binding forced account, and the
  156  actual undertaking of foundation forming with steel installation
  157  and concrete placing.
  158         (4) “Department” means the Department of Education.
  159         (5) “Exemption” means a school that would otherwise require
  160  a statement of need but qualifies for an exemption from that
  161  requirement.
  162         (6) “Expedited review” means the process by which certain
  163  types of applications are not subject to the review and letter
  164  of intent requirements in s. 1002.325.
  165         (7) “State board” means the State Board of Education.
  166         (8) “Statement of need” means a written statement issued by
  167  the department evidencing the need for a new, converted,
  168  expanded, or otherwise significantly modified charter school in
  169  a specific school district.
  170         Section 3. Section 1002.324, Florida Statutes, is created
  171  to read:
  172         1002.324 Duties and responsibilities of department; rules.—
  173         (1) The department is designated as the sole agency that
  174  may issue, revoke, or deny issuance of statements of need and
  175  that may issue, revoke, or deny exemptions from statement of
  176  need review in accordance with applicable law and rules.
  177         (2) Before determining that there is a need for additional
  178  charter schools in a school district, the department shall
  179  assess whether a specific need can be satisfied through existing
  180  traditional public schools and charter schools.
  181         (3) The state board shall establish by rule:
  182         (a) Uniform need methodologies for charter schools. In
  183  developing such methodologies, the state board shall, at a
  184  minimum, consider full-time equivalent student population
  185  trends, student demographics, the number of existing charter
  186  schools already operational in a school district, the need for
  187  additional programs and educational services for students which
  188  may be met by a charter school, and the need for innovative
  189  educational services.
  190         (b) A full-time equivalent student methodology with a goal
  191  of maintaining an average enrollment rate of 95 percent.
  192         (4) In developing rules, the state board shall involve all
  193  stakeholders to the greatest extent practicable, including
  194  school district personnel, charter school operators, and
  195  statewide organizations that represent public school educators
  196  and charter schools.
  197         Section 4. Section 1002.325, Florida Statutes, is created
  198  to read:
  199         1002.325 Application process and review for statements of
  200  need.—
  201         (1) LETTERS OF INTENT.—
  202         (a) At least 30 days before filing an application for a
  203  statement of need, a letter of intent shall be filed by the
  204  prospective applicant with the department stating its intent to
  205  develop a charter school, subject to review by the department.
  206  The letter of intent shall also be filed with the district
  207  school board of the school district in which the proposed
  208  charter school would be located.
  209         (b) Letters of intent must describe the proposed charter
  210  school; specify the projected number of full-time equivalent
  211  students to be enrolled; identify the educational services to be
  212  provided and the specific location of the charter school; and
  213  identify the applicant.
  214         (c) Within 21 days after receipt of a letter of intent, the
  215  department shall publish a notice of the filing of a letter of
  216  intent in the Florida Administrative Register. Notices published
  217  under this paragraph must specify due dates applicable to the
  218  timetable or cycle for filing applications and for requesting an
  219  administrative hearing.
  220         (2) APPLICATION.—An application for a statement of need
  221  must include:
  222         (a) A detailed description of the proposed charter school
  223  project and a statement of purpose and need in relation to the
  224  criteria used by the department in reviewing applications.
  225         (b) A statement of the financial resources needed by and
  226  available to the applicant to complete the proposed project. The
  227  statement must include:
  228         1. A complete listing of all capital projects, including
  229  facility acquisitions applied for, pending, approved, or
  230  underway in this state or any state at the time of application,
  231  regardless of whether the state has a statement of need program.
  232  This listing must include the applicant’s actual or proposed
  233  financial commitment to those projects and an assessment of
  234  their impact on the applicant’s ability to provide adequate
  235  funding for the proposed project.
  236         2. A detailed listing of the needed capital expenditures,
  237  including sources of funds.
  238         3. A detailed financial projection, including a statement
  239  of the projected revenue and expenses for the first 2 years of
  240  operation after completion of the proposed project. This
  241  statement must include a detailed evaluation of the impact of
  242  the proposed project on the cost of other services provided by
  243  the applicant.
  244         (c) An audited financial statement of the applicant or the
  245  applicant’s parent corporation if audited financial statements
  246  of the applicant do not exist. In an application submitted by an
  247  existing charter school, financial condition documentation must
  248  include, but need not be limited to, a balance sheet and a
  249  profit-and-loss statement for the 2 previous fiscal years’
  250  operation.
  251         (3) REVIEW OF APPLICATIONS.—
  252         (a) The state board shall adopt a rule that establishes a
  253  timetable or cycle basis for the submission and review of
  254  statement of need applications. The timetable or cycle for the
  255  submission and review of statement of need applications must be
  256  aligned and consistent with the charter school application and
  257  review process established in s. 1002.33. Reviews of
  258  applications shall be conducted on a timely basis and provide
  259  for all completed applications to be considered at least
  260  annually.
  261         (b) Within 15 days after the applicable filing deadline for
  262  the review cycle, the department shall determine if the
  263  application is complete. If the application is incomplete, the
  264  department shall request specific information from the applicant
  265  necessary to complete the application; however, the department
  266  may make only one such request. If the requested information is
  267  not filed with the department within 21 days after the receipt
  268  of the department’s request, the application shall be withdrawn
  269  from consideration.
  270         (c) Upon the request of any applicant or substantially
  271  affected person, including other charter schools and the
  272  district school board, within 14 days after notice that an
  273  application has been filed, a public hearing may be held at the
  274  department’s discretion if the department determines that a
  275  proposed project involves issues of great public interest. In
  276  such cases, the department shall attend the public hearing. The
  277  public hearing shall allow applicants and other interested
  278  parties reasonable time to present their positions and to
  279  present rebuttal information. A recorded transcript of the
  280  hearing shall be maintained. The public hearing shall be held at
  281  the local school district level within 21 days after the
  282  application is deemed complete.
  283         (d) In those cases in which a written statement of
  284  opposition has been timely filed regarding a statement of need
  285  application, the applicant may submit a written response to the
  286  department. Such response must be received by the department
  287  within 10 days of the written statement due date.
  288         (4) CRITERIA.—The evaluation criteria for applications
  289  submitted to the department must include the following:
  290         (a) The need for the proposed charter school and
  291  educational services.
  292         (b) The availability of the proposed educational services
  293  in existing public schools and charter schools in the school
  294  district.
  295         (c) The ability of the applicant to provide quality
  296  educational services and the applicant’s record of providing
  297  quality educational services, if applicable.
  298         (d) The availability of resources, including teachers and
  299  administrators, management personnel, and funds for capital and
  300  operating expenditures, for project accomplishment and
  301  operation.
  302         (e) The extent to which the proposed educational services
  303  will enhance the educational options in the school district and
  304  are not duplicative of existing educational services.
  305         (f) The immediate and long-term financial feasibility and
  306  fiscal efficiency of the charter school.
  307         (g) The costs and methods of the proposed construction,
  308  including whether the charter school will be in compliance with
  309  the State Requirements for Educational Facilities approved by
  310  the state board, and if not, whether the charter school will be
  311  in compliance with any applicable state and local building
  312  codes.
  313         (h) The applicant’s record of providing educational
  314  services to students who are from lower socioeconomic
  315  backgrounds, who are low performing, or who have disabilities.
  316         (5) FEES.—The department shall assess a fee on each
  317  application for a statement of need as follows:
  318         (a) A minimum base fee of $10,000 per application.
  319         (b) In addition to the base fee, $50 for each full-time
  320  equivalent student projected to enroll based on the enrollment
  321  capacity of the applicant school. The total fee assessed
  322  pursuant to paragraph (a) and this paragraph may not exceed
  323  $50,000 in the aggregate.
  324         (c) The department shall reduce the fee assessed pursuant
  325  to paragraph (b) if the fees collected are projected to exceed
  326  the cost of administering the statement of need program.
  327         Section 5. Section 1002.326, Florida Statutes, is created
  328  to read:
  329         1002.326 Disposition of applications; administrative
  330  hearing; judicial review.—
  331         (1) The department’s review of and final action on
  332  applications submitted must be in accordance with the criteria
  333  specified in s. 1002.325(4) and any applicable state board
  334  rules.
  335         (2) Within 60 days after all of the applications in a
  336  review cycle are determined to be complete, the department shall
  337  issue a report and notice of intent specifying statements of
  338  need that are issued or denied for the review cycle. The
  339  department’s report shall specify its findings of fact and
  340  determinations upon which its decision is based. If the
  341  department intends to issue a statement of need, the report and
  342  notice of intent must also include any conditions that the
  343  department intends to attach to the statement of need. The state
  344  board shall designate by rule a senior staff person, other than
  345  the person who issues the final order and notice of intent, to
  346  issue the report.
  347         (3) The department shall publish the notice of intent in
  348  the Florida Administrative Register within 14 days after
  349  issuance.
  350         (4) If no administrative hearing is requested pursuant to
  351  subsection (5), the report and the notice of intent become the
  352  final order of the department. The department shall provide a
  353  copy of the final order to the appropriate district school
  354  board.
  355         (5) Within 21 days after publication of the report and
  356  notice of intent, any person authorized under paragraph (b) to
  357  participate in a hearing may file a request for an
  358  administrative hearing. Failure to file a request for hearing
  359  within 21 days of publication of notice of intent constitutes a
  360  waiver of any right to a hearing and a waiver of the right to
  361  contest the final decision of the department. A copy of the
  362  request for hearing shall be served on the applicant.
  363         (a) Hearings must be held in the county in which the
  364  charter school would be located unless the administrative law
  365  judge determines that changing the location will facilitate the
  366  proceedings. The department shall assign proceedings requiring
  367  hearings to the Division of Administrative Hearings of the
  368  Department of Management Services within 10 days after the time
  369  has expired for requesting a hearing. Except upon unanimous
  370  consent of the parties, or upon the granting by the
  371  administrative law judge of a motion of continuance, hearings
  372  shall commence within 60 days after the administrative law judge
  373  has been assigned, and a continuance may not be granted after
  374  commencement of the proceedings absent a finding of
  375  extraordinary circumstances by the administrative law judge. All
  376  parties, except the department, shall bear their own expense of
  377  preparing a transcript. In any application for a statement of
  378  need which is referred to the Division of Administrative
  379  Hearings for hearing, the administrative law judge shall
  380  complete and submit to the parties a recommended order as
  381  provided in ss. 120.569 and 120.57. The recommended order shall
  382  be issued within 30 days after the receipt of the proposed
  383  recommended orders or the deadline for submission of such
  384  proposed recommended orders, whichever is earlier. The division
  385  shall adopt procedures for administrative hearings which
  386  maximize the use of stipulated facts and shall provide for the
  387  admission of prepared testimony.
  388         (b) The department shall issue its final order within 45
  389  days after receipt of the recommended order. If the department
  390  fails to take action within such time, or as otherwise agreed to
  391  by the applicant and the department, the applicant may take
  392  appropriate legal action to compel the department to act. When
  393  making a determination on an application for a statement of
  394  need, the department is specifically exempt from the time
  395  limitations provided in s. 120.60(1).
  396         (6)(a) A party to an administrative hearing for an
  397  application for a statement of need has the right, within not
  398  more than 30 days after the date of the final order, to seek
  399  judicial review in the appropriate district court of appeal
  400  pursuant to s. 120.68. The department shall be a party in any
  401  such proceeding.
  402         (b) In such judicial review, the court shall affirm the
  403  final order of the department, unless the decision is arbitrary
  404  or capricious or does not comply with the requirements for a
  405  statement of need.
  406         (c) The court may award reasonable attorney fees and costs
  407  to the prevailing party if the court finds that there was a
  408  complete absence of a justiciable issue of law or fact raised by
  409  the losing party.
  410         Section 6. Section 1002.327, Florida Statutes, is created
  411  to read:
  412         1002.327Applicability; expedited review; exemption.—
  413         (1) Beginning July 1, 2016, all charter schools described
  414  in this subsection are subject to review and must file an
  415  application for a statement of need with the department. The
  416  department is exclusively responsible for determining whether a
  417  charter school project is subject to review. Schools subject to
  418  review include:
  419         (a)A charter school that is newly constructed or
  420  established, including a replacement charter school, if the
  421  proposed project site is not located on the same site as, or
  422  within 1 mile of, the existing charter school.
  423         (b) An existing traditional public school proposed to be
  424  converted to a charter school.
  425         (c) An existing charter school that increases the number of
  426  students enrolled or the enrollment capacity.
  427         (d) An existing charter school that increases the number of
  428  grades being provided educational services.
  429         (2) All charter schools that meet the criteria specified in
  430  this subsection are eligible for an expedited review of an
  431  application for a statement of need:
  432         (a) Transfer of a previously issued statement of need. A
  433  subsequent purchaser of a charter school that is not yet
  434  operational, but previously issued a statement of need, may
  435  acquire the school’s statement of need without a transfer.
  436         (b) Replacement of an existing charter school.
  437         (c) Expansion of a charter school designated as a high
  438  performing charter school in accordance with s. 1002.331.
  439         (d) Replication of a high-performing charter school in a
  440  high-performing charter school system.
  441         (3) An applicant may submit a request for exemption from
  442  subsection (1) to the department. Any exemption request must
  443  specifically document why an exemption is appropriate in a
  444  particular circumstance.
  445         Section 7. Section 1002.328, Florida Statutes, is created
  446  to read:
  447         1002.328 Conditions and monitoring.—
  448         (1)(a) The department may conditionally issue a statement
  449  of need, predicated upon statements of intent expressed by an
  450  applicant in the application for a statement of need. Any
  451  conditions imposed on a statement of need based on such
  452  statements of intent shall be stated on the face of the
  453  statement of need approval.
  454         (b) A statement holder may apply to the department for a
  455  modification of conditions imposed under paragraph (a). If the
  456  holder of a statement of need demonstrates good cause why the
  457  statement should be modified, the department shall reissue the
  458  statement of need with such modifications as may be appropriate.
  459  The state board shall define by rule the factors constituting
  460  good cause for modification.
  461         (c)If the holder of a statement of need fails to comply
  462  with a condition upon which the issuance of the statement or
  463  exemption was predicated, the department may assess an
  464  administrative fine against the statement holder in an amount
  465  not to exceed $1,000 per each day of noncompliance. Failure to
  466  annually report compliance with any condition upon which the
  467  issuance of the statement was predicated constitutes
  468  noncompliance. In assessing the penalty, the department shall
  469  take into account as mitigation the degree of noncompliance.
  470  Proceeds of such penalties shall be deposited in the State
  471  School Trust Fund.
  472         (2)(a)Unless the applicant has commenced construction, if
  473  the project requires construction, and unless the applicant has
  474  incurred an enforceable capital expenditure commitment for a
  475  project, if the project does not provide for construction, a
  476  statement of need terminates 18 months after the date of
  477  issuance. The department shall monitor the progress of the
  478  holder of the statement of need in meeting the timetable for
  479  school development specified in the application and may revoke
  480  the statement of need if the holder of the statement is not
  481  meeting such timetable and is not making a good-faith effort, as
  482  defined by rule, to meet it.
  483         (b)The statement of need validity period for a project
  484  shall be extended by the department if the applicant
  485  demonstrates to the satisfaction of the department that good
  486  faith commencement of the project is being delayed by litigation
  487  or by governmental action or inaction with respect to
  488  regulations or permitting that precludes commencement of the
  489  project.
  490         Section 8. Section 1002.3281, Florida Statutes, is created
  491  to read:
  492         1002.3281 Statement of need required; penalties.—It is
  493  unlawful for any person to undertake a project subject to review
  494  without a valid statement of need. Any person violating this
  495  section commits a misdemeanor of the second degree, punishable
  496  as provided in s. 775.082 or s. 775.083. Each day of continuing
  497  violation shall be considered a separate offense.
  498         Section 9. Section 1002.3282, Florida Statutes, is created
  499  to read:
  500         1002.3282 Transfer prohibited.—The holder of a statement of
  501  need may not transfer a statement of need to another person. A
  502  holder who violates this section commits a misdemeanor of the
  503  first degree, punishable as provided in s. 775.082, or by a fine
  504  of up to $10,000, or both.
  505         Section 10. Section 1002.329, Florida Statutes, is created
  506  to read:
  507         1002.329 Injunction.—Notwithstanding the existence or
  508  pursuit of any other remedy, the department may maintain an
  509  action in the name of the state for injunction or other process
  510  against any person to restrain or prevent the pursuit of a
  511  project subject to review in absence of a valid statement of
  512  need.
  513         Section 11. Subsection (1), paragraph (a) of subsection
  514  (6), and paragraph (a) of subsection (8) of section 1002.33,
  515  Florida Statutes, are amended, and paragraph (e) is added to
  516  subsection (7) of that section, to read:
  517         1002.33 Charter schools.—
  518         (1) AUTHORIZATION.—Charter schools shall be part of the
  519  state’s program of public education. All charter schools in
  520  Florida are public schools. A charter school may be formed by
  521  creating a new school or converting an existing public school to
  522  charter status. A charter school may operate a virtual charter
  523  school pursuant to s. 1002.45(1)(d) to provide full-time online
  524  instruction to eligible students, pursuant to s. 1002.455, in
  525  kindergarten through grade 12. A charter school must amend its
  526  charter or submit a new application pursuant to subsection (6)
  527  to become a virtual charter school. A virtual charter school is
  528  subject to the requirements of this section; however, a virtual
  529  charter school is exempt from subsections (18) and (19),
  530  subparagraphs (20)(a)2., 4., 5., and 7., paragraph (20)(c), and
  531  s. 1003.03. A public school may not use the term charter in its
  532  name unless it has been approved under this section. Effective
  533  July 1, 2016, a district school board may not issue a charter to
  534  a charter school that has not been issued a statement of need
  535  pursuant to s. 1002.326.
  536         (6) APPLICATION PROCESS AND REVIEW.—Charter school
  537  applications are subject to the following requirements:
  538         (a) A person or entity wishing to open a charter school
  539  shall prepare and submit an application on a model application
  540  form prepared by the Department of Education which:
  541         1. Demonstrates how the school will use the guiding
  542  principles and meet the statutorily defined purpose of a charter
  543  school.
  544         2. Provides a detailed curriculum plan that illustrates how
  545  students will be provided services to attain the Sunshine State
  546  Standards.
  547         3. Contains goals and objectives for improving student
  548  learning and measuring that improvement. These goals and
  549  objectives must indicate how much academic improvement students
  550  are expected to show each year, how success will be evaluated,
  551  and the specific results to be attained through instruction.
  552         4. Describes the reading curriculum and differentiated
  553  strategies that will be used for students reading at grade level
  554  or higher and a separate curriculum and strategies for students
  555  who are reading below grade level. A sponsor shall deny a
  556  charter if the school does not propose a reading curriculum that
  557  is consistent with effective teaching strategies that are
  558  grounded in scientifically based reading research.
  559         5. Contains an annual financial plan for each year
  560  requested by the charter for operation of the school for up to 5
  561  years. This plan must contain anticipated fund balances based on
  562  revenue projections, a spending plan based on projected revenues
  563  and expenses, and a description of controls that will safeguard
  564  finances and projected enrollment trends.
  565         6. Contains additional information a sponsor may require,
  566  which shall be attached as an addendum to the charter school
  567  application described in this paragraph.
  568         7. For the establishment of a virtual charter school,
  569  documents that the applicant has contracted with a provider of
  570  virtual instruction services pursuant to s. 1002.45(1)(d).
  571         8. Documents that the applicant has been issued a statement
  572  of need by the Department of Education. Issuance of a statement
  573  of need does not guarantee approval of the charter school
  574  application.
  575         (7) CHARTER.—The major issues involving the operation of a
  576  charter school shall be considered in advance and written into
  577  the charter. The charter shall be signed by the governing board
  578  of the charter school and the sponsor, following a public
  579  hearing to ensure community input.
  580         (e) The charter must identify the issuance of a statement
  581  of need by the Department of Education.
  582         (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.—
  583         (a) The sponsor shall make student academic achievement for
  584  all students the most important factor when determining whether
  585  to renew or terminate the charter. The sponsor may also choose
  586  not to renew or may terminate the charter for any of the
  587  following grounds:
  588         1. Failure to participate in the state’s education
  589  accountability system created in s. 1008.31, as required in this
  590  section, or failure to meet the requirements for student
  591  performance stated in the charter.
  592         2. Failure to meet generally accepted standards of fiscal
  593  management.
  594         3. Violation of law.
  595         4. Failure to maintain a valid statement of need.
  596         5. Other good cause shown.
  597         Section 12. This act shall take effect October 1, 2015.