Florida Senate - 2023                      CS for CS for SB 1328
       By the Committees on Appropriations; and Education Pre-K -12;
       and Senator Hutson
       576-04082-23                                          20231328c2
    1                        A bill to be entitled                      
    2         An act relating to charter school capital outlay
    3         funding; amending s. 212.055, F.S.; conforming
    4         provisions to changes made by the act; amending s.
    5         1013.62, F.S.; deleting obsolete language; making
    6         technical changes; revising charter school eligibility
    7         requirements; revising the calculation methodologies
    8         for the distribution of specified funds to eligible
    9         charter schools; providing school district
   10         requirements for the distribution of capital outlay
   11         funds to eligible charter schools; requiring that any
   12         purchase, lease-purchase, or lease be at the appraised
   13         value; defining the term “appraised value”; requiring
   14         that documentation of the appraised value be provided
   15         upon request of the department; providing an effective
   16         date.
   18  Be It Enacted by the Legislature of the State of Florida:
   20         Section 1. Paragraph (c) of subsection (6) of section
   21  212.055, Florida Statutes, is amended to read:
   22         212.055 Discretionary sales surtaxes; legislative intent;
   23  authorization and use of proceeds.—It is the legislative intent
   24  that any authorization for imposition of a discretionary sales
   25  surtax shall be published in the Florida Statutes as a
   26  subsection of this section, irrespective of the duration of the
   27  levy. Each enactment shall specify the types of counties
   28  authorized to levy; the rate or rates which may be imposed; the
   29  maximum length of time the surtax may be imposed, if any; the
   30  procedure which must be followed to secure voter approval, if
   31  required; the purpose for which the proceeds may be expended;
   32  and such other requirements as the Legislature may provide.
   33  Taxable transactions and administrative procedures shall be as
   34  provided in s. 212.054.
   36         (c) The resolution providing for the imposition of the
   37  surtax must set forth a plan for use of the surtax proceeds for
   38  fixed capital expenditures or fixed capital costs associated
   39  with the construction, reconstruction, or improvement of school
   40  facilities and campuses which have a useful life expectancy of 5
   41  or more years, and any land acquisition, land improvement,
   42  design, and engineering costs related thereto, or any purchase,
   43  lease-purchase, lease, or maintenance of school buses, as
   44  defined in s. 1006.25, which have a life expectancy of 5 years
   45  or more. Additionally, the plan shall include the costs of
   46  retrofitting and providing for technology implementation,
   47  including hardware and software, for the various sites within
   48  the school district. Surtax revenues may be used to service bond
   49  indebtedness to finance projects authorized by this subsection,
   50  and any interest accrued thereto may be held in trust to finance
   51  such projects. Neither the proceeds of the surtax nor any
   52  interest accrued thereto shall be used for operational expenses.
   53  Surtax revenues shared with charter schools shall be shared
   54  based on their proportionate share of total school district
   55  capital outlay full-time equivalent enrollment projections as
   56  developed by the Education Estimating Conference pursuant to s.
   57  216.136 and shall be expended by the charter school in a manner
   58  consistent with the allowable uses set forth in s. 1013.62(4).
   59  All revenues and expenditures shall be accounted for in a
   60  charter school’s monthly or quarterly financial statement
   61  pursuant to s. 1002.33(9). The eligibility of a charter school
   62  to receive funds under this subsection shall be determined in
   63  accordance with s. 1013.62(1). If a school’s charter is not
   64  renewed or is terminated and the school is dissolved under the
   65  provisions of law under which the school was organized, any
   66  unencumbered funds received under this subsection shall revert
   67  to the sponsor.
   68         Section 2. Subsections (1) through (4) of section 1013.62,
   69  Florida Statutes, are amended to read:
   70         1013.62 Charter schools capital outlay funding.—
   71         (1) For the 2022-2023 fiscal year, charter school capital
   72  outlay funding shall consist of state funds appropriated in the
   73  2022-2023 General Appropriations Act. Beginning in fiscal year
   74  2023-2024, Charter school capital outlay funding shall consist
   75  of state funds when such funds are appropriated in the General
   76  Appropriations Act and revenue resulting from the discretionary
   77  millage authorized in s. 1011.71(2) if the amount of state funds
   78  appropriated for charter school capital outlay in any fiscal
   79  year is less than the average charter school capital outlay
   80  funds per unweighted full-time equivalent student for the 2018
   81  2019 fiscal year, multiplied by the estimated number of charter
   82  school students for the applicable fiscal year, and adjusted by
   83  changes in the Consumer Price Index issued by the United States
   84  Department of Labor from the previous fiscal year. Nothing in
   85  this subsection prohibits a school district from distributing to
   86  charter schools funds resulting from the discretionary millage
   87  authorized in s. 1011.71(2).
   88         (a) To be eligible to receive capital outlay funds, a
   89  charter school must:
   90         1.a. Have been in operation for 2 or more years;
   91         b. Be governed by a governing board established in the
   92  state for 2 or more years which operates both charter schools
   93  and conversion charter schools within the state;
   94         c. Be an expanded feeder chain of a charter school within
   95  the same school district that is currently receiving charter
   96  school capital outlay funds;
   97         d. Have been accredited by a regional accrediting
   98  association as defined by State Board of Education rule;
   99         e. Serve students in facilities that are provided by a
  100  business partner for a charter school-in-the-workplace pursuant
  101  to s. 1002.33(15)(b); or
  102         f. Be operated by a hope operator pursuant to s. 1002.333.
  103         2. Have an annual audit that does not reveal any of the
  104  financial emergency conditions provided in s. 218.503(1) for the
  105  most recent fiscal year for which such audit results are
  106  available.
  107         3. Have satisfactory student achievement based on state
  108  accountability standards applicable to the charter school.
  109         4. Have received final approval from its sponsor pursuant
  110  to s. 1002.33 for operation during that fiscal year.
  111         5. Serve students in facilities that are not provided by
  112  the charter school’s sponsor.
  113         6.Attest in writing to the department that if the charter
  114  school is nonrenewed or terminated, any unencumbered funds and
  115  all equipment and property purchased with public funds must
  116  revert as prescribed in subsection (5).
  117         (b) A charter school is not eligible to receive capital
  118  outlay funds if:
  119         1. It was created by the conversion of a public school and
  120  operates in facilities provided by the charter school’s sponsor
  121  for a nominal fee, or at no charge, or if it is directly or
  122  indirectly operated by the school district;
  123         2.It is a developmental research, or laboratory, school
  124  that receives state funding for capital improvement purposes
  125  pursuant to s. 1002.32(9)(e); or
  126         3.A member of the governing board, or his or her family
  127  member as defined in s. 440.13(1)(b), has an interest in or is
  128  an employee of the lessor, excluding charter schools operating
  129  pursuant to s. 1002.33(15).
  130         (2) The department shall use the following calculation
  131  methodology to allocate state funds appropriated in the General
  132  Appropriations Act to eligible charter schools:
  133         (a)Eligible charter schools shall be grouped into
  134  categories based on their student populations according to the
  135  following criteria:
  136         1.Seventy-five percent or greater who are eligible for
  137  free or reduced-price school meals under the National School
  138  Lunch Program or, for schools operating programs under the
  139  Community Eligibility Provision of the Healthy, Hunger-Free Kids
  140  Act of 2010, an equivalent percentage of the student population
  141  eligible for free and reduced-price meals as determined by
  142  applying the multiplier authorized under the National School
  143  Lunch Act, 42 U.S.C. s. 1759a(a)(1)(F)(vii), to the number of
  144  students reported for direct certification.
  145         2.Twenty-five percent or greater with disabilities as
  146  defined in state board rule and consistent with the requirements
  147  of the Individuals with Disabilities Education Act.
  148         (b) If an eligible charter school does not meet the
  149  criteria for either category under paragraph (a), its FTE shall
  150  be provided as the base amount of funding and shall be assigned
  151  a weight of 1.0. An eligible charter school that meets the
  152  criteria under subparagraph (a)1. or subparagraph (a)2. shall be
  153  provided an additional 25 percent above the base funding amount,
  154  and the total FTE shall be multiplied by a weight of 1.25. An
  155  eligible charter school that meets the criteria under both
  156  subparagraphs (a)1. and (a)2. shall be provided an additional 50
  157  percent above the base funding amount, and the FTE for that
  158  school shall be multiplied by a weight of 1.5.
  159         (a)(c)Divide the state appropriation for charter school
  160  capital outlay shall be divided by the total weighted FTE for
  161  all eligible charter schools to determine the base charter
  162  school per weighted FTE allocation amount. The base charter
  163  school per weighted FTE allocation amount shall be multiplied by
  164  the weighted FTE of each charter school to determine each
  165  charter school’s capital outlay allocation.
  166         (b)(d)The department shall calculate the eligible charter
  167  school funding allocations. Allocate funds shall be allocated
  168  using full-time equivalent membership from the second and third
  169  enrollment surveys and free and reduced-price school lunch data.
  170  The department shall recalculate the allocations periodically
  171  based on the receipt of revised information, on a schedule
  172  established by the Commissioner of Education.
  173         (c)(e)The department shall Distribute capital outlay funds
  174  monthly, beginning in the first quarter of the fiscal year,
  175  based on one-twelfth of the amount the department reasonably
  176  expects the charter school to receive during that fiscal year.
  177  The commissioner shall adjust subsequent distributions as
  178  necessary to reflect each charter school’s recalculated
  179  allocation.
  180         (3) If the school board levies the discretionary millage
  181  authorized in s. 1011.71(2), and the state funds appropriated
  182  for charter school capital outlay in any fiscal year are less
  183  than the average charter school capital outlay funds per
  184  unweighted full-time equivalent student for the 2018-2019 fiscal
  185  year, multiplied by the estimated number of charter school
  186  students for the applicable fiscal year, and adjusted by changes
  187  in the Consumer Price Index issued by the United States
  188  Department of Labor from the previous fiscal year, the
  189  department must shall use the following calculation methodology
  190  to determine the amount of revenue that a school district must
  191  distribute to each eligible charter school:
  192         (a) Reduce the total discretionary millage revenue by the
  193  school district’s annual debt service obligation incurred as of
  194  March 1, 2017, which has not been subsequently retired, and any
  195  amount of participation requirement pursuant to s.
  196  1013.64(2)(a)8. which that is being satisfied by revenues raised
  197  by the discretionary millage.
  198         (b) Divide the school district’s adjusted discretionary
  199  millage revenue by the district’s total capital outlay full-time
  200  equivalent membership and the total number of unweighted full
  201  time equivalent students of each eligible charter school to
  202  determine a capital outlay allocation per full-time equivalent
  203  student.
  204         (c) Multiply the capital outlay allocation per full-time
  205  equivalent student by the total number of full-time equivalent
  206  students of each eligible charter school to determine the
  207  capital outlay allocation for each charter school.
  208         (d) If applicable, reduce the capital outlay allocation
  209  identified in paragraph (c) by the total amount of state funds
  210  allocated to each eligible charter school in subsection (2) to
  211  determine the maximum calculated capital outlay allocation. The
  212  amount of funds a school district shall distribute to charter
  213  schools must be as follows:
  214         1.For fiscal year 2023-2024, the amount is 20 percent of
  215  the amount calculated under this paragraph.
  216         2.For fiscal year 2024-2025, the amount is 40 percent of
  217  the amount calculated under this paragraph.
  218         3.For fiscal year 2025-2026, the amount is 60 percent of
  219  the amount calculated under this paragraph.
  220         4.For fiscal year 2026-2027, the amount is 80 percent of
  221  the amount calculated under this paragraph.
  222         5.For fiscal year 2027-2028, and each fiscal year
  223  thereafter, the amount is 100 percent of the amount calculated
  224  under this paragraph.
  225         (e) School districts shall distribute capital outlay funds
  226  to eligible charter schools no later than February 1 of each
  227  year, as required by this subsection, based on the amount of
  228  funds received by the district school board. School districts
  229  shall distribute any remaining capital outlay funds, as required
  230  by this subsection, upon the receipt of such funds until the
  231  total amount calculated pursuant to this subsection is
  232  distributed.
  234  By October 1 of each year, each school district shall certify to
  235  the department the amount of debt service and participation
  236  requirement that complies with the requirement of paragraph (a)
  237  and can be reduced from the total discretionary millage revenue.
  238  The Auditor General shall verify compliance with the
  239  requirements of paragraph (a) and s. 1011.71(2)(e) during
  240  scheduled operational audits of school districts.
  241         (4) A charter school’s governing body may use charter
  242  school capital outlay funds for the following purposes:
  243         (a) Purchase of real property.
  244         (b) Construction of school facilities.
  245         (c) Purchase, lease-purchase, or lease of permanent or
  246  relocatable school facilities.
  247         (d) Purchase of vehicles to transport students to and from
  248  the charter school.
  249         (e) Renovation, repair, and maintenance of school
  250  facilities that the charter school owns or is purchasing through
  251  a lease-purchase or long-term lease of 5 years or longer.
  252         (f) Payment of the cost of premiums for property and
  253  casualty insurance necessary to insure the school facilities.
  254         (g) Purchase, lease-purchase, or lease of driver’s
  255  education vehicles; motor vehicles used for the maintenance or
  256  operation of plants and equipment; security vehicles; or
  257  vehicles used in storing or distributing materials and
  258  equipment.
  259         (h) Purchase, lease-purchase, or lease of computer and
  260  device hardware and operating system software necessary for
  261  gaining access to or enhancing the use of electronic and digital
  262  instructional content and resources; and enterprise resource
  263  software applications that are classified as capital assets in
  264  accordance with definitions of the Governmental Accounting
  265  Standards Board, have a useful life of at least 5 years, and are
  266  used to support schoolwide administration or state-mandated
  267  reporting requirements. Enterprise resource software may be
  268  acquired by annual license fees, maintenance fees, or lease
  269  agreement.
  270         (i) Payment of the cost of the opening day collection for
  271  the library media center of a new school.
  273  Any purchase, lease-purchase, or lease must be at the appraised
  274  value. The term appraised value” means the fair market value
  275  determined by an independent state-licensed and qualified
  276  appraiser selected by the governing board. Documentation of the
  277  appraised value must be provided upon request of the department.
  278  Conversion charter schools may use capital outlay funds received
  279  through the reduction in the administrative fee provided in s.
  280  1002.33(20) for renovation, repair, and maintenance of school
  281  facilities that are owned by the sponsor.
  282         Section 3. This act shall take effect July 1, 2023.