HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 1 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to education funding; amending s. 2 212.055, F.S.; conforming provisions to changes made 3 by the act; amending s. 1013.62, F.S.; deleting 4 obsolete language; making technical changes; revising 5 the calculation methodology for the distribution of 6 specified revenue to eligible charter schools; 7 providing school district requirements for the 8 distribution of capital outlay funds to charter 9 schools; providing an appropriation; providing an 10 effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Paragraph (b) of subsection (6) of section 15 212.055, Florida Statutes, is amended to read: 16 212.055 Discretionary sales surtaxes ; legislative intent; 17 authorization and use of proceeds. βIt is the legislative intent 18 that any authorization for imposition of a discretionary sales 19 surtax shall be published in the Florida Statutes as a 20 subsection of this section, irrespective of the dura tion of the 21 levy. Each enactment shall specify the types of counties 22 authorized to levy; the rate or rates which may be imposed; the 23 maximum length of time the surtax may be imposed, if any; the 24 procedure which must be followed to secure voter approval, if 25 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 2 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S required; the purpose for which the proceeds may be expended; 26 and such other requirements as the Legislature may provide. 27 Taxable transactions and administrative procedures shall be as 28 provided in s. 212.054. 29 (6) SCHOOL CAPITAL OUTLAY SURTAX. β 30 (b) The resolution must include a statement that provides 31 a brief and general description of the school capital outlay 32 projects to be funded by the surtax. The resolution must include 33 a statement that the revenues collected must be shared with 34 eligible charter schools based on their proportionate share of 35 the total school district capital outlay full-time equivalent 36 enrollment as adopted by the education estimating conference 37 established in s. 216.136 enrollment. The statement must conform 38 to the requirements of s . 101.161 and shall be placed on the 39 ballot by the governing body of the county. The following 40 question shall be placed on the ballot: 41 42 ....FOR THE ....CENTS TAX 43 ....AGAINST THE ....CENTS TAX 44 Section 2. Subsections (1), (2), and (3) of section 45 1013.62, Florida Statutes, are amended to read: 46 1013.62 Charter schools capital outlay funding. β 47 (1) For the 2022-2023 fiscal year, charter school capital 48 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 3 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S outlay funding shall consist of state funds appropriated in the 49 2022-2023 General Appropriations Act. Beginning in fiscal year 50 2023-2024, Charter school capital outlay funding shall consist 51 of state funds when such funds are appropriated in the General 52 Appropriations Act and revenue resulting from the discretionary 53 millage authorized in s. 1011.71(2) if the amount of state funds 54 appropriated for charter school capital outlay in any fiscal 55 year is less than the average charter school capital outlay 56 funds per unweighted full -time equivalent student for the 2018 -57 2019 fiscal year, multiplied by the estimat ed number of charter 58 school students for the applicable fiscal year, and adjusted by 59 changes in the Consumer Price Index issued by the United States 60 Department of Labor from the previous fiscal year. Nothing in 61 this subsection prohibits a school district f rom distributing to 62 charter schools funds resulting from the discretionary millage 63 authorized in s. 1011.71(2) . 64 (a) To be eligible to receive capital outlay funds, a 65 charter school must: 66 1.a. Have been in operation for 2 or more years; 67 b. Be governed by a governing board established in the 68 state for 2 or more years which operates both charter schools 69 and conversion charter schools within the state; 70 c. Be an expanded feeder chain of a charter school within 71 the same school district that is currently r eceiving charter 72 school capital outlay funds; 73 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 4 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S d. Have been accredited by a regional accrediting 74 association as defined by State Board of Education rule; 75 e. Serve students in facilities that are provided by a 76 business partner for a charter school -in-the-workplace pursuant 77 to s. 1002.33(15)(b); or 78 f. Be operated by a hope operator pursuant to s. 1002.333. 79 2. Have an annual audit that does not reveal any of the 80 financial emergency conditions provided in s. 218.503(1) for the 81 most recent fiscal year for which such audit results are 82 available. 83 3. Have satisfactory student achievement based on state 84 accountability standards applicable to the charter school. 85 4. Have received final approval from its sponsor pursuant 86 to s. 1002.33 for operation during tha t fiscal year. 87 5. Serve students in facilities that are not provided by 88 the charter school's sponsor. 89 (b) A charter school is not eligible to receive capital 90 outlay funds if it was created by the conversion of a public 91 school and operates in facilities provided by the charter 92 school's sponsor for a nominal fee, or at no charge, or if it is 93 directly or indirectly operated by the school district. 94 (2) The department shall use the following calculation 95 methodology to allocate state funds appropriated in t he General 96 Appropriations Act to eligible charter schools: 97 (a) Eligible charter schools shall be grouped into 98 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 5 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S categories based on their student populations according to the 99 following criteria: 100 1. Seventy-five percent or greater who are eligible for 101 free or reduced-price school meals under the National School 102 Lunch Program or, for schools operating programs under the 103 Community Eligibility Provision of the Healthy, Hunger -Free Kids 104 Act of 2010, an equivalent percentage of the student population 105 eligible for free and reduced-price meals as determined by 106 applying the multiplier authorized under the National School 107 Lunch Act, 42 U.S.C. s. 1759a(a)(1)(F)(vii), to the number of 108 students reported for direct certification. 109 2. Twenty-five percent or greater with disabilities as 110 defined in state board rule and consistent with the requirements 111 of the Individuals with Disabilities Education Act. 112 (b) If an eligible charter school does not meet the 113 criteria for either category under paragraph (a), its FTE shall 114 be provided as the base amount of funding and shall be assigned 115 a weight of 1.0. An eligible charter school that meets the 116 criteria under subparagraph (a)1. or subparagraph (a)2. shall be 117 provided an additional 25 percent above the base funding amount, 118 and the total FTE shall be multiplied by a weight of 1.25. An 119 eligible charter school that meets the criteria under both 120 subparagraphs (a)1. and (a)2. shall be provided an additional 50 121 percent above the base funding amount, and the FTE for that 122 school shall be multiplied by a weight of 1.5. 123 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 6 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (a)(c) Divide the state appropriation for charter school 124 capital outlay shall be divided by the total weighted FTE for 125 all eligible charter schools to determine the base charter 126 school per weighted FTE allocation amount. Th e base charter 127 school per weighted FTE allocation amount shall be multiplied by 128 the weighted FTE of each charter school to determine each 129 charter school's capital outlay allocation. 130 (b)(d) The department shall calculate the eligible charter 131 school funding allocations. Funds shall be allocated using full -132 time equivalent membership from the second and third enrollment 133 surveys and free and reduced -price school lunch data . The 134 department shall recalculate the allocations periodically based 135 on the receipt of revised information, on a schedule established 136 by the Commissioner of Education. 137 (c)(e) The department shall distribute capital outlay 138 funds monthly, beginning in the first quarter of the fiscal 139 year, based on one-twelfth of the amount the department 140 reasonably expects the charter school to receive during that 141 fiscal year. The commissioner shall adjust subsequent 142 distributions as necessary to reflect each charter school's 143 recalculated allocation. 144 (3) If the school board levies the discretionary millage 145 authorized in s. 1011.71(2), and the state funds appropriated 146 for charter school capital outlay in any fiscal year are less 147 than the average charter school capital outlay funds per 148 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 7 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S unweighted full-time equivalent student for the 2018 -2019 fiscal 149 year, multiplied by the estimated number of charter school 150 students for the applicable fiscal year, and adjusted by changes 151 in the Consumer Price Index issued by the United States 152 Department of Labor from the previous fiscal year, the 153 department shall use the followi ng calculation methodology to 154 determine the amount of revenue that a school district must 155 distribute to each eligible charter school: 156 (a) Reduce the total discretionary millage revenue by the 157 school district's annual debt service obligation incurred as o f 158 March 1, 2017, which has not been subsequently retired, and any 159 amount of participation requirement pursuant to s. 160 1013.64(2)(a)8. that is being satisfied by revenues raised by 161 the discretionary millage. 162 (b) Divide the school district's adjusted discre tionary 163 millage revenue by the district's total capital outlay full -time 164 equivalent membership and the total number of unweighted full-165 time equivalent students of each eligible charter school to 166 determine a capital outlay allocation per full -time equivalent 167 student. 168 (c) Multiply the capital outlay allocation per full -time 169 equivalent student by the total number of full -time equivalent 170 students of each eligible charter school to determine the 171 capital outlay allocation for each charter school. 172 (d) If applicable, reduce the capital outlay allocation 173 HB 1259 2023 CODING: Words stricken are deletions; words underlined are additions. hb1259-00 Page 8 of 8 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S identified in paragraph (c) by the total amount of state funds 174 allocated to each eligible charter school in subsection (2) to 175 determine the maximum calculated capital outlay allocation. 176 (e) School districts sha ll distribute capital outlay funds 177 to eligible charter schools no later than February 1 of each 178 year, as required by this subsection, based on the amount of 179 funds received by the district school board. School districts 180 shall distribute any remaining capita l outlay funds, as required 181 by this subsection, upon the receipt of such funds until the 182 total amount calculated pursuant to this subsection is 183 distributed. 184 185 By October 1 of each year, each school district shall certify to 186 the department the amount of debt service and participation 187 requirement that complies with the requirement of paragraph (a) 188 and can be reduced from the total discretionary millage revenue. 189 The Auditor General shall verify compliance with the 190 requirements of paragraph (a) and s. 1011.71(2) (e) during 191 scheduled operational audits of school districts. 192 Section 3. For the 2023-2024 fiscal year, the sum of 193 $213,453,885 in nonrecurring funds is appropriated from the 194 Public Education Capital Outlay and Debt Service Trust Fund to 195 the Department of Education for charter school capital outlay 196 funding. 197 Section 4. This act shall take effect July 1, 2023. 198