Bill Text: FL S1130 | 2016 | Regular Session | Introduced
Bill Title: Charter Schools
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-03-11 - Died in Education Pre-K - 12 [S1130 Detail]
Download: Florida-2016-S1130-Introduced.html
Florida Senate - 2016 SB 1130 By Senator Montford 3-00439-16 20161130__ 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 4 legislative findings; providing the purpose of the 5 act; creating s. 1002.323, F.S.; defining terms; 6 creating s. 1002.324, F.S.; specifying the duties and 7 responsibilities of the Department of Education with 8 respect to the issuance of statements of need and 9 exemptions; requiring the State Board of Education to 10 adopt certain rules; requiring the state board to 11 allow stakeholder participation in rule development; 12 creating s. 1002.325, F.S.; requiring an applicant to 13 file a letter of intent with the department before 14 applying for a statement of need; prescribing required 15 content for a letter of intent; requiring the 16 department to publish notice of filing of letters of 17 intent in the Florida Administrative Register; 18 specifying the content of a statement of need 19 application; requiring the state board to adopt a rule 20 regarding timeframes; establishing procedures 21 governing the submission and review of applications; 22 authorizing the department to hold a public hearing 23 regarding a proposed project under certain 24 circumstances; authorizing an applicant to submit a 25 response to a written statement of opposition; 26 specifying evaluation criteria for applications; 27 authorizing the department to assess fees on 28 applications; creating s. 1002.326, F.S.; establishing 29 procedures for the department to issue or deny 30 statements of need; requiring publication of the 31 department’s report and notice of intent; authorizing 32 specified parties to file a request for an 33 administrative hearing; requiring the department to 34 issue a final order within a certain timeframe of an 35 administrative law judge’s recommended order; 36 authorizing an applicant to take legal action to 37 compel the department to act under certain 38 circumstances; authorizing a party to an 39 administrative hearing to seek judicial review; 40 authorizing the reviewing court to award attorney fees 41 and court costs under certain circumstances; creating 42 s. 1002.327, F.S.; specifying applicability of the 43 statement of need review process; authorizing 44 expedited review and exemption from review under 45 certain circumstances; creating s. 1002.328, F.S.; 46 authorizing the department to conditionally issue a 47 statement of need; authorizing a statement holder to 48 apply to the department for a modification of 49 conditions; requiring the state board to specify 50 factors constituting good cause for modification by 51 rule; authorizing the department to assess a fine 52 against a noncompliant statement of need or exemption 53 holder; requiring fine proceeds to be deposited into 54 the State School Trust Fund; specifying the length of 55 validity for a statement of need; requiring the 56 department to monitor the progress of a statement 57 holder; requiring the department to extend the length 58 of validity for a statement of need under certain 59 circumstances; creating s. 1002.3281, F.S.; 60 prohibiting a person from undertaking a project 61 subject to review without holding a statement of need; 62 providing a penalty; creating s. 1002.3282, F.S.; 63 prohibiting the transfer of a statement of need; 64 providing a penalty; creating s. 1002.329, F.S.; 65 authorizing the department to seek injunctive relief; 66 amending s. 1002.33, F.S.; conforming provisions to 67 changes made by the act; providing an effective date. 68 69 Be It Enacted by the Legislature of the State of Florida: 70 71 Section 1. Section 1002.322, Florida Statutes, is created 72 to read: 73 1002.322 Short title; legislative findings; purpose.— 74 (1) Sections 1002.322-1002.329 may be cited as the “Charter 75 School Excellence Act.” 76 (2) The Legislature finds that: 77 (a) Section 1, Art. IX of the State Constitution mandates a 78 uniform, efficient, safe, secure, and high quality system of 79 free public schools. Thus, a uniform and coherent system of 80 public education which is both equitable and fiscally efficient 81 is imperative. All charter schools in this state are public 82 schools and are, therefore, subject to the constitutional 83 mandate. 84 (b) The number of charter schools in this state has grown 85 steadily since the charter schools’ inception in 1996 and 86 exceeded 640 in the 2014-2015 school year. Charter school 87 enrollment grew to more than 251,000 students in the 2014-2015 88 school year. A charter school can be independently opened and 89 operated by individuals, a municipality, or a legal entity 90 organized under the laws of this state. A volunteer governing 91 board, rather than a district school board composed of elected 92 representatives, controls each individual charter school. 93 (c) The application process for new charter schools is 94 biased toward encouraging unmitigated growth of the charter 95 school industry, rather than focusing on the specific needs of 96 students or the safeguarding of taxpayer dollars. Unlike many 97 other states, Florida has not established a maximum cap on the 98 number of charter schools that are authorized to operate. 99 (d) The lack of transparency and local control over charter 100 schools has resulted in the inefficient use of taxpayer dollars. 101 School districts are limited in their ability to intervene in 102 the management or instruction of an individual charter school, 103 and this limited oversight of charter schools has exacerbated 104 the problem of failing charter schools. Delaying intervention 105 into a failing charter school’s operation has repeatedly 106 resulted in the failure of the charter school and the resulting 107 displacement of students. In many instances, school districts 108 have been unable to recoup taxpayer dollars invested in a failed 109 charter school. Additionally, current standards of performance 110 for charter schools, compared to the standards applied to 111 traditional public schools, are inadequate, given a charter 112 school’s ability to target and select particular students for 113 enrollment. 114 (e) For-profit companies that provide charter schools with 115 various administrative services can consume a significant 116 portion of the school’s budget, which ultimately results in less 117 money going toward student education. Such administrative 118 services often duplicate services already available through the 119 school districts and are an inefficient use of taxpayer dollars. 120 (f) Many charter schools have failed to assume the role 121 that was originally envisioned for them in the original 122 authorizing legislation. Instead, they offer the same 123 instructional services provided in traditional public schools 124 located in the same neighborhood. Duplicative programs in 125 charter schools which largely mirror programs available in 126 traditional public schools are burdens on the already 127 financially strained public school system. The state’s charter 128 schools should complement, and not duplicate, the state’s 129 traditional public schools. 130 (3) The purpose of this act is to develop and implement a 131 program that requires statements of need for charter schools to 132 ensure that such schools provide innovative educational services 133 not provided by traditional public schools in the community, 134 that such schools do not duplicate existing services provided by 135 school districts and traditional public schools, and that such 136 schools are responsible stewards of taxpayer money. 137 Section 2. Section 1002.323, Florida Statutes, is created 138 to read: 139 1002.323 Definitions.—As used in ss. 1002.322-1002.329, the 140 term: 141 (1) “Capital expenditure” means an expenditure, including 142 an expenditure for a construction project undertaken by a 143 charter school, which, under generally accepted accounting 144 principles, is not chargeable as an expense of operation and 145 maintenance; which is made to change the student enrollment 146 capacity of the charter school or substantially change the 147 educational services or grade levels of the charter school; and 148 which includes the cost of the studies, surveys, designs, plans, 149 working drawings, specifications, initial financing costs, and 150 other activities essential to the acquisition, improvement, 151 expansion, or replacement of the plant and equipment. 152 (2) “Charter school” means a school that meets the 153 requirements of s. 1002.33 and that has been issued a statement 154 of need or an exemption. 155 (3) “Commenced construction” means initiation of and 156 continuous activities beyond site preparation associated with 157 erecting or modifying a charter school, including procuring a 158 building permit, securing an executed owner-contractor agreement 159 or an irrevocable or binding forced account, or actually 160 undertaking the building of the foundation with steel 161 installation and concrete placement. 162 (4) “Department” means the Department of Education. 163 (5) “Exemption” means an exemption granted to a school that 164 would otherwise require a statement of need. 165 (6) “Expedited review” means the process by which a 166 statement of need application is not subject to the review and 167 letter of intent requirements in s. 1002.325. 168 (7) “State board” means the State Board of Education. 169 (8) “Statement of need” means a written statement issued by 170 the department evidencing the need for a new, converted, 171 expanded, or otherwise significantly modified charter school in 172 a specific school district. 173 Section 3. Section 1002.324, Florida Statutes, is created 174 to read: 175 1002.324 Duties and responsibilities of department; rules.— 176 (1) The department shall be the sole agency that may issue, 177 revoke, or deny statements of need or exemptions in accordance 178 with applicable law and rules. 179 (2) Before determining that there is a need for additional 180 charter schools in a school district, the department shall 181 assess whether a specific need can be satisfied through existing 182 traditional public schools and charter schools. 183 (3) The state board shall establish by rule: 184 (a) Uniform need methodologies for charter schools. In 185 developing such methodologies, the state board shall, at a 186 minimum, consider full-time equivalent student population 187 trends, student demographics, the number of existing charter 188 schools already operational in a school district, the need for 189 additional programs and educational services for students which 190 may be met by a charter school, and the need for innovative 191 educational services. 192 (b) A full-time equivalent student methodology with a goal 193 of maintaining an average enrollment rate of 95 percent. 194 (4) In developing rules, the state board shall involve all 195 stakeholders to the greatest extent practicable, including 196 school district personnel, charter school operators, and 197 statewide organizations that represent public school educators 198 and charter schools. 199 Section 4. Section 1002.325, Florida Statutes, is created 200 to read: 201 1002.325 Application process and review for statements of 202 need.— 203 (1) LETTERS OF INTENT.— 204 (a) At least 30 days before filing an application for a 205 statement of need, a prospective applicant must file a letter of 206 intent with the department stating the applicant’s intent to 207 open a charter school, subject to review by the department. The 208 letter of intent must also be filed with the district school 209 board of the school district in which the proposed charter 210 school would be located. 211 (b) A letter of intent must describe the proposed charter 212 school; specify the projected number of full-time equivalent 213 students to be enrolled; and identify the applicant, the 214 specific location of the charter school, and the educational 215 services to be provided. 216 (c) Within 21 days after receipt of the letter of intent, 217 the department shall publish a notice of the filing of the 218 letter of intent in the Florida Administrative Register. A 219 notice published under this paragraph must specify due dates 220 applicable to the timetable or cycle for filing applications and 221 for requesting an administrative hearing. 222 (2) APPLICATION.—An application for a statement of need 223 must include: 224 (a) A detailed description of the proposed charter school 225 project and a statement of purpose and need in relation to the 226 criteria used by the department in reviewing applications. 227 (b) A statement of the financial resources needed by and 228 available to the applicant to complete the proposed project. The 229 statement must include: 230 1. A complete listing of all capital projects, including 231 facility acquisitions applied for, pending, approved, or 232 underway in this state or any state at the time of application, 233 regardless of whether the state has a statement of need program. 234 This listing must include the applicant’s actual or proposed 235 financial commitment to those projects and an assessment of 236 their impact on the applicant’s ability to provide adequate 237 funding for the proposed project. 238 2. A detailed listing of the needed capital expenditures, 239 including sources of funds. 240 3. A detailed financial projection, including a statement 241 of the projected revenue and expenses for the first 2 years of 242 operation after completion of the proposed project. This 243 statement must include a detailed evaluation of the impact of 244 the proposed project on the cost of other services provided by 245 the applicant. 246 (c) An audited financial statement of the applicant or the 247 applicant’s parent corporation if the applicant does not have 248 audited financial statements. In an application submitted by an 249 existing charter school, financial condition documentation must 250 include, but need not be limited to, a balance sheet and a 251 profit-and-loss statement for the 2 previous fiscal years’ 252 operation. 253 (3) REVIEW OF APPLICATIONS.— 254 (a) The state board shall adopt a rule that establishes a 255 timetable or cycle basis for the submission and review of 256 statement of need applications. The timetable or cycle for the 257 submission and review of statement of need applications must be 258 aligned and consistent with the charter school application and 259 review process established in s. 1002.33. The department shall 260 review applications on a timely basis and provide for all 261 completed applications and shall consider at least annually all 262 completed applications. 263 (b) Within 15 days after the applicable filing deadline for 264 the review cycle, the department shall determine if the 265 application is complete. If the application is incomplete, the 266 department shall request specific information from the applicant 267 necessary to complete the application; however, the department 268 may make only one such request. If the requested information is 269 not filed with the department within 21 days after receipt of 270 the department’s request, the application shall be withdrawn 271 from consideration. 272 (c) Upon the request of any applicant or substantially 273 affected person, including other charter schools and the 274 district school board, within 14 days after notice that an 275 application has been filed, a public hearing may be held at the 276 department’s discretion if the department determines that a 277 proposed project involves issues of great public interest. In 278 such cases, the department shall attend the public hearing. The 279 public hearing shall allow applicants and other interested 280 parties reasonable time to present their positions and to 281 present rebuttal information. The department shall maintain a 282 recorded transcript of the hearing. A public hearing shall be 283 held at the local school district level within 21 days after the 284 application is deemed complete. 285 (d) If a written statement of opposition has been timely 286 filed with the department by an individual regarding a statement 287 of need application, the applicant may submit a written response 288 to the department. Such response must be received by the 289 department within 10 days after the written statement of 290 opposition is received by the department. 291 (4) CRITERIA.—The evaluation criteria for applications 292 submitted to the department must include the following: 293 (a) The need for the proposed charter school and 294 educational services. 295 (b) The availability of the proposed educational services 296 in existing public schools and charter schools in the school 297 district. 298 (c) The ability of the applicant to provide quality 299 educational services and the applicant’s record of providing 300 quality educational services, if applicable. 301 (d) The availability of resources, including teachers and 302 administrators, management personnel, and funds for capital and 303 operating expenditures, for project accomplishment and 304 operation. 305 (e) The extent to which the proposed educational services 306 will enhance the educational options in the school district and 307 are not duplicative of existing educational services. 308 (f) The immediate and long-term financial feasibility and 309 fiscal efficiency of the charter school. 310 (g) The costs and methods of the proposed construction, 311 including whether the charter school will be in compliance with 312 the State Requirements for Educational Facilities approved by 313 the state board, and if not, whether the charter school will be 314 in compliance with any applicable state and local building 315 codes. 316 (h) The applicant’s record of providing educational 317 services to students who are from lower socioeconomic 318 backgrounds, who are low performing, or who have disabilities. 319 (5) FEES.—The department shall assess a fee on each 320 application for a statement of need as follows: 321 (a) A minimum base fee of $10,000 per application. 322 (b) In addition to the base fee, $50 for each full-time 323 equivalent student projected to enroll based on the enrollment 324 capacity of the applicant school. The total fee assessed 325 pursuant to paragraph (a) and this paragraph may not exceed 326 $50,000 in the aggregate. 327 (c) The department shall reduce the fee assessed pursuant 328 to paragraph (b) if the fees collected are projected to exceed 329 the cost of administering the statement of need program. 330 Section 5. Section 1002.326, Florida Statutes, is created 331 to read: 332 1002.326 Disposition of applications; administrative 333 hearing; judicial review.— 334 (1) The department’s review of and final action on 335 applications submitted must be in accordance with the criteria 336 specified in s. 1002.325(4) and any applicable state board 337 rules. 338 (2) Within 60 days after all of the applications in a 339 review cycle are determined to be complete, the department shall 340 issue a report and notice of intent specifying statements of 341 need that are issued or denied for the review cycle. The 342 department’s report shall specify its findings of fact and 343 determinations upon which its decision is based. If the 344 department intends to issue a statement of need, the report and 345 notice of intent must also include any conditions that the 346 department intends to attach to the statement of need. The state 347 board shall designate by rule a senior staff person, other than 348 the person who issues the final order and notice of intent, to 349 issue the report. 350 (3) The department shall publish the notice of intent in 351 the Florida Administrative Register within 14 days after 352 issuance of the notice. 353 (4) If an administrative hearing is not requested pursuant 354 to subsection (5), the report and the notice of intent become 355 the final order of the department. The department shall provide 356 a copy of the final order to the appropriate district school 357 board. 358 (5) Within 21 days after publication of the report and 359 notice of intent, any person authorized to participate in a 360 hearing may file a request for an administrative hearing. 361 Failure to file a request for hearing within 21 days after 362 publication of the report and notice of intent constitutes a 363 waiver of the right to a hearing and a waiver of the right to 364 contest the final decision of the department. A copy of the 365 request for hearing shall be served on the applicant. 366 (a) Hearings must be held in the county in which the 367 charter school would be located unless the administrative law 368 judge determines that changing the location will facilitate the 369 proceedings. The department shall assign proceedings that 370 require hearings to the Division of Administrative Hearings of 371 the Department of Management Services within 10 days after the 372 time has expired for requesting a hearing. Except upon unanimous 373 consent of the parties or upon the granting by the 374 administrative law judge of a motion of continuance, a hearing 375 shall commence within 60 days after the administrative law judge 376 has been assigned, and a continuance may not be granted after 377 commencement of the proceedings absent a finding of 378 extraordinary circumstances by the administrative law judge. All 379 parties, except the department, shall bear their own expense of 380 preparing a transcript. In any application for a statement of 381 need which is referred to the Division of Administrative 382 Hearings for a hearing, the administrative law judge shall 383 complete and submit to the parties a recommended order as 384 provided in ss. 120.569 and 120.57. The recommended order shall 385 be issued within 30 days after receipt of the proposed 386 recommended orders or the deadline for submission of such 387 proposed recommended orders, whichever is earlier. The division 388 shall adopt procedures for administrative hearings which 389 maximize the use of stipulated facts and shall provide for the 390 admission of prepared testimony. 391 (b) The department shall issue its final order within 45 392 days after receipt of the recommended order. If the department 393 fails to take action within such time, or as otherwise agreed to 394 by the applicant and the department, the applicant may take 395 appropriate legal action to compel the department to act. When 396 making a determination on an application for a statement of 397 need, the department is specifically exempt from the time 398 limitations provided in s. 120.60(1). 399 (6)(a) A party to an administrative hearing for an 400 application for a statement of need has the right, within 30 401 days after the date of the final order, to seek judicial review 402 in the appropriate district court of appeal pursuant to s. 403 120.68. The department shall be a party in any such proceeding. 404 (b) In such judicial review, the court shall affirm the 405 final order of the department unless the decision is arbitrary 406 or capricious or does not comply with the requirements for a 407 statement of need. 408 (c) The court may award reasonable attorney fees and costs 409 to the prevailing party if the court finds that there was a 410 complete absence of a justiciable issue of law or fact raised by 411 the losing party. 412 Section 6. Section 1002.327, Florida Statutes, is created 413 to read: 414 1002.327 Applicability; expedited review; exemption.— 415 (1) Beginning July 1, 2017, all charter schools described 416 in this subsection are subject to review and must file an 417 application for a statement of need with the department. The 418 department is exclusively responsible for determining whether a 419 charter school project is subject to review. Schools subject to 420 review include: 421 (a) A charter school that is newly constructed or newly 422 established, including a replacement charter school, if the 423 proposed project site is not located on the same site as, or 424 within 1 mile of, the existing charter school. 425 (b) An existing traditional public school proposed to be 426 converted to a charter school. 427 (c) An existing charter school that increases the number of 428 students enrolled or the enrollment capacity. 429 (d) An existing charter school that increases the number of 430 grades being provided educational services. 431 (2) All charter schools that meet the criteria specified in 432 this subsection are eligible for an expedited review of an 433 application for a statement of need: 434 (a) Transfer of a previously issued statement of need. A 435 subsequent purchaser of a charter school that is not yet 436 operational, but has previously been issued a statement of need, 437 may acquire the school’s statement of need without a transfer; 438 (b) Replacement of an existing charter school; 439 (c) Expansion of a charter school designated as a high 440 performing charter school in accordance with s. 1002.331; or 441 (d) Replication of a high-performing charter school in a 442 high-performing charter school system. 443 (3) An applicant may submit a request for exemption from 444 subsection (1) to the department. Any exemption request must 445 specifically document why an exemption is appropriate in a 446 particular circumstance. 447 Section 7. Section 1002.328, Florida Statutes, is created 448 to read: 449 1002.328 Conditions and monitoring.— 450 (1)(a) The department may conditionally issue a statement 451 of need, predicated upon statements of intent expressed by an 452 applicant in the application for a statement of need. Any 453 conditions imposed on a statement of need based on such 454 statements of intent shall be specified on the face of the 455 statement of need approval. 456 (b) A holder of a statement of need may apply to the 457 department for a modification of conditions imposed under 458 paragraph (a). If the holder of the statement of need shows good 459 cause why the statement of need should be modified, the 460 department shall reissue the statement of need with such 461 modifications as may be appropriate. The state board shall 462 define by rule the factors constituting good cause for 463 modification of a statement of need. 464 (c) If a holder of a statement of need or a charter school 465 that is granted an exemption fails to comply with a condition 466 upon which the issuance of the statement of need or exemption is 467 predicated, the department may assess an administrative fine 468 against the holder of the statement of need or the charter 469 school in an amount not to exceed $1,000 per each day of 470 noncompliance. Failure to annually report compliance with any 471 condition upon which the issuance of the statement of need or 472 exemption is predicated constitutes noncompliance. In assessing 473 the penalty, the department shall take into account as 474 mitigation the degree of noncompliance. Proceeds of such 475 penalties shall be deposited into the State School Trust Fund. 476 (2)(a) A statement of need terminates 18 months after the 477 date of issuance unless the applicant has commenced construction 478 on a project that requires construction or unless the applicant 479 has incurred an enforceable capital expenditure commitment on a 480 project that does not require construction. The department shall 481 monitor the progress of the holder of the statement of need in 482 meeting the timetable for school development specified in the 483 application and may revoke the statement of need if the holder 484 of the statement of need is not meeting such timetable and is 485 not making a good faith effort, as defined by rule, to meet the 486 timetable. 487 (b) The statement of need validity period for a project 488 shall be extended by the department if the applicant 489 demonstrates to the satisfaction of the department that the 490 applicant has made a good faith attempt at commencing 491 construction, but the project is delayed by litigation or by 492 governmental action or inaction with respect to regulations or 493 permitting which precludes commencing construction. 494 Section 8. Section 1002.3281, Florida Statutes, is created 495 to read: 496 1002.3281 Statement of need required; penalties.—It is 497 unlawful for an individual to undertake a charter school project 498 that is subject to review without a valid statement of need. An 499 individual who violates this section commits a misdemeanor of 500 the second degree, punishable as provided in s. 775.082 or s. 501 775.083. Each day of continuing violation shall be considered a 502 separate offense. 503 Section 9. Section 1002.3282, Florida Statutes, is created 504 to read: 505 1002.3282 Transfer prohibited.—The holder of a statement of 506 need may not transfer a statement of need to another individual 507 unless that individual meets the requirements of s. 508 1002.327(2)(a). A holder that violates this section commits a 509 misdemeanor of the first degree, punishable as provided in s. 510 775.082, by a fine of up to $10,000, or both. 511 Section 10. Section 1002.329, Florida Statutes, is created 512 to read: 513 1002.329 Injunction.—Notwithstanding the existence or 514 pursuit of any other remedy, the department may maintain an 515 action in the name of the state for injunction or other process 516 against any person to restrain or prevent the pursuit of a 517 project subject to review in absence of a valid statement of 518 need. 519 Section 11. Subsection (1), paragraph (a) of subsection 520 (6), and paragraph (a) of subsection (8) of section 1002.33, 521 Florida Statutes, are amended, and paragraph (e) is added to 522 subsection (7) of that section, to read: 523 1002.33 Charter schools.— 524 (1) AUTHORIZATION.—Charter schools shall be part of the 525 state’s program of public education. All charter schools in 526 Florida are public schools. A charter school may be formed by 527 creating a new school or converting an existing public school to 528 charter status. A charter school may operate a virtual charter 529 school pursuant to s. 1002.45(1)(d) to provide full-time online 530 instruction to eligible students, pursuant to s. 1002.455, in 531 kindergarten through grade 12. A charter school must amend its 532 charter or submit a new application pursuant to subsection (6) 533 to become a virtual charter school. A virtual charter school is 534 subject to the requirements of this section; however, a virtual 535 charter school is exempt from subsections (18) and (19), 536 subparagraphs (20)(a)2., 4., 5., and 7., paragraph (20)(c), and 537 s. 1003.03. A public school may not use the term charter in its 538 name unless it has been approved under this section. Effective 539 July 1, 2017, a district school board may not issue a charter to 540 a charter school that has not been issued a statement of need 541 pursuant to s. 1002.326. 542 (6) APPLICATION PROCESS AND REVIEW.—Charter school 543 applications are subject to the following requirements: 544 (a) A person or entity wishing to open a charter school 545 shall prepare and submit an application on a model application 546 form prepared by the Department of Education which: 547 1. Demonstrates how the school will use the guiding 548 principles and meet the statutorily defined purpose of a charter 549 school. 550 2. Provides a detailed curriculum plan that illustrates how 551 students will be provided services to attain the Sunshine State 552 Standards. 553 3. Contains goals and objectives for improving student 554 learning and measuring that improvement. These goals and 555 objectives must indicate how much academic improvement students 556 are expected to show each year, how success will be evaluated, 557 and the specific results to be attained through instruction. 558 4. Describes the reading curriculum and differentiated 559 strategies that will be used for students reading at grade level 560 or higher and a separate curriculum and strategies for students 561 who are reading below grade level. A sponsor shall deny a 562 charter if the school does not propose a reading curriculum that 563 is consistent with effective teaching strategies that are 564 grounded in scientifically based reading research. 565 5. Contains an annual financial plan for each year 566 requested by the charter for operation of the school for up to 5 567 years. This plan must contain anticipated fund balances based on 568 revenue projections, a spending plan based on projected revenues 569 and expenses, and a description of controls that will safeguard 570 finances and projected enrollment trends. 571 6. Contains additional information a sponsor may require, 572 which shall be attached as an addendum to the charter school 573 application described in this paragraph. 574 7. For the establishment of a virtual charter school, 575 documents that the applicant has contracted with a provider of 576 virtual instruction services pursuant to s. 1002.45(1)(d). 577 8. Documents that the applicant has been issued a statement 578 of need by the Department of Education. Issuance of a statement 579 of need does not guarantee approval of the charter school 580 application. 581 (7) CHARTER.—The major issues involving the operation of a 582 charter school shall be considered in advance and written into 583 the charter. The charter shall be signed by the governing board 584 of the charter school and the sponsor, following a public 585 hearing to ensure community input. 586 (e) The charter must identify the issuance of a statement 587 of need by the Department of Education. 588 (8) CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER.— 589 (a) The sponsor shall make student academic achievement for 590 all students the most important factor when determining whether 591 to renew or terminate the charter. The sponsor may also choose 592 not to renew or may terminate the charter for any of the 593 following grounds: 594 1. Failure to participate in the state’s education 595 accountability system created in s. 1008.31, as required in this 596 section, or failure to meet the requirements for student 597 performance stated in the charter. 598 2. Failure to meet generally accepted standards of fiscal 599 management. 600 3. Violation of law. 601 4. Failure to maintain a valid statement of need. 602 5. Other good cause shown. 603 Section 12. This act shall take effect October 1, 2016.