Bill Text: MN HF1372 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Charter school law clarified.
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2011-04-05 - Introduction and first reading, referred to Education Reform [HF1372 Detail]
Download: Minnesota-2011-HF1372-Introduced.html
1.2relating to education; clarifying charter school law;amending Minnesota Statutes
1.32010, sections 124D.10, subdivisions 3, 4, 6, 6a, 23; 124D.11, subdivision 9.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 124D.10, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
1.8subdivision have the meanings given them.
1.9"Application" to receive approval as an authorizer means the proposal an eligible
1.10authorizer submits to the commissioner under paragraph (c) before that authorizer is able
1.11to submit any affidavit to charter to a school.
1.12"Application" under subdivision 4 means the charter school business plan a
1.13school developer submits to an authorizer for approval to establish a charter school that
1.14documents the school developer's mission statement, school purposes, program design,
1.15financial plan, governance and management structure, and background and experience,
1.16plus any other information the authorizer requests. The application also shall include a
1.17"statement of assurances" of legal compliance prescribed by the commissioner.
1.18"Affidavit" means a written statement the authorizer submits to the commissioner
1.19for approval to establish a charter school under subdivision 4 attesting to its review and
1.20approval process before chartering a school.
1.21"Affidavit" means the form an authorizer submits to the commissioner that is a
1.22precondition to a charter school organizing an affiliated nonprofit building corporation
1.23under subdivision 17a.
1.24(b) The following organizations may authorize one or more charter schools:
2.1(1) a school board; intermediate school district school board; education district
2.2organized under sections123A.15 to
123A.19 ;
2.3(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code of
2.41986, excluding a nonpublic sectarian or religious institution without an approved affidavit
2.5by the commissioner before July 1, 2009, and any person other than a natural person that
2.6directly or indirectly, through one or more intermediaries, controls, is controlled by, or
2.7is under common control with the nonpublic sectarian or religious institution, and any
2.8other charitable organization under this clause that in the federal IRS Form 1023, Part
2.9IV, describes activities indicating a religious purpose, that:
2.10(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
2.11Foundations;
2.12(ii) is registered with the attorney general's office;
2.13(iii) reports an end-of-year fund balance of at least $2,000,000; and
2.14(iv) is incorporated in the state of Minnesota;
2.15(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
2.16four-year degrees and is registered with the Minnesota Office of Higher Education under
2.17chapter 136A; community college, state university, or technical college governed by the
2.18Board of Trustees of the Minnesota State Colleges and Universities; or the University of
2.19Minnesota; or
2.20(4) a nonprofit corporation subject to chapter 317A, described in section317A.905 ,
2.21and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
2.22of 1986, may authorize one or more charter schools if the charter school has operated
2.23for at least three years under a different authorizer and if the nonprofit corporation has
2.24existed for at least 25 years.
2.25(5) no more than three single-purpose authorizers that are charitable, nonsectarian
2.26organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
2.27incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
2.28organizations interested in being approved as an authorizer under this paragraph must
2.29submit a proposal to the commissioner that includes the provisions of paragraph (c) and
2.30a five-year financial plan. Such authorizers shall consider and approve applications
2.31using the criteria provided in subdivision 4 and shall not limit the applications it solicits,
2.32considers, or approves to any single curriculum, learning program, or method.
2.33(c) An eligible authorizer under this subdivision must apply to the commissioner for
2.34approval as an authorizer before submitting any affidavit to the commissioner to charter
2.35a school. The application for approval as a charter school authorizer must demonstrate
2.36the applicant's ability to implement the procedures and satisfy the criteria for chartering a
3.1school under this section. The commissioner must approve or disapprove an application
3.2within 60 business days of the application deadline. If the commissioner disapproves
3.3the application, the commissioner must notify the applicant of the deficiencies and the
3.4applicant then has 20 business days to address the deficiencies to the commissioner's
3.5satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
3.6an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
3.7approval, must consider the applicant's:
3.8(1) capacity and infrastructure;
3.9(2) application criteria and process;
3.10(3) contracting process;
3.11(4) ongoing oversight and evaluation processes; and
3.12(5) renewal criteria and processes.
3.13(d) Theaffidavit application for approval to be submitted to and evaluated by the
3.14commissioner must include at least the following:
3.15(1) how chartering schools is a way for the organization to carry out its mission;
3.16(2) a description of the capacity of the organization to serve as an authorizer,
3.17including the personnel who will perform the authorizing duties, their qualifications, the
3.18amount of time they will be assigned to this responsibility, and the financial resources
3.19allocated by the organization to this responsibility;
3.20(3) a description of the application and review process the authorizer will use to make
3.21decisions regarding the granting of charters, which will include at least the following:
3.22(i) how the statutory purposes defined in subdivision 1 are addressed;
3.23(ii) the mission, goals, program model, and student performance expectations;
3.24(iii) an evaluation plan for the school that includes criteria for evaluating educational,
3.25organizational, and fiscal plans;
3.26(iv) the school's governance plan;
3.27(v) the financial management plan; and
3.28(vi) the administration and operations plan;
3.29(4) a description of the type of contract it will arrange with the schools it charters
3.30that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
3.31charter school for governing its educational program, controlling its funds, and making
3.32school management decisions;
3.33(5) the process to be used for providing ongoing oversight of the school consistent
3.34with the contract expectations specified in clause (4) that assures that the schools chartered
3.35are complying with both the provisions of applicable law and rules, and with the contract;
4.1(6) the process for making decisions regarding the renewal or termination of
4.2the school's charter based on evidence that demonstrates the academic, organizational,
4.3and financial competency of the school, including its success in increasing student
4.4achievement and meeting the goals of the charter school agreement; and
4.5(7) an assurance specifying that the organization is committed to serving as an
4.6authorizer for the full five-year term.
4.7A disapproved applicant under this paragraph may resubmit an application during a
4.8future application period.
4.9(e) The authorizer must participate in department-approved training.
4.10(f) An authorizer that chartered a school before August 1, 2009, must apply byJune
4.1130 August 3, 2011, to the commissioner for approval, under paragraph (c), to continue
4.12as an authorizer under this section. For purposes of this paragraph, an authorizer that
4.13fails to submit a timely application for commissioner approval is ineligible tocharter
4.14authorize a school.
4.15(g) The commissioner shall review an authorizer's performance every five years in
4.16a manner and form determined by the commissioner and may review an authorizer's
4.17performance more frequently at the commissioner's own initiative or at the request of a
4.18charter school operator, charter school board member, or other interested party. The
4.19commissioner, after completing the review, shall transmit a report with findings to the
4.20authorizer. If, consistent with this section, the commissioner finds that an authorizer
4.21has not fulfilled the requirements of this section, the commissioner may subject the
4.22authorizer to corrective action, which may include terminating the contract with the
4.23charter school board of directors of a school it chartered. The commissioner must notify
4.24the authorizer in writing of any findings that may subject the authorizer to corrective
4.25action and the authorizer then has 15 business days to request an informal hearing before
4.26the commissioner takes corrective action.
4.27(h) The commissioner may at any time take corrective action against an authorizer,
4.28including terminating an authorizer's ability to charter a school for:
4.29(1) failing to demonstrate the criteria under paragraph (c) under which the
4.30commissioner approved the authorizer;
4.31(2) violating a term of the chartering contract between the authorizer and the charter
4.32school board of directors;or
4.33(3) unsatisfactory performance as an approved authorizer; or
4.34(4) any good cause shown.
4.35EFFECTIVE DATE.This section is effective the day following final enactment.
5.1 Sec. 2. Minnesota Statutes 2010, section 124D.10, subdivision 4, is amended to read:
5.2 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
5.3a school developer, may charter a licensed teacher under section122A.18, subdivision
5.41 , or a group of individuals that includes one or more licensed teachers under section
5.5122A.18, subdivision 1
, to operate a school subject to the commissioner's approval of the
5.6authorizer's affidavit under paragraph (b). The school must be organized and operated
5.7as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
5.8the provisions under the applicable chapter shall apply to the school except as provided
5.9in this section.
5.10Notwithstanding sections465.717 and
465.719 , a school district, subject to this
5.11section and section124D.11 , may create a corporation for the purpose of establishing a
5.12charter school.
5.13 (b) Before the operators may establish and operate a school, the authorizer must file
5.14an affidavit with the commissioner stating its intent to charter a school. An authorizer
5.15must file a separate affidavit for each school it intends to charter. The affidavit must
5.16state the terms and conditions under which the authorizer would charter a school and
5.17how the authorizer intends to oversee the fiscal and student performance of the charter
5.18school and to comply with the terms of the written contract between the authorizer
5.19and the charter school board of directors under subdivision 6. The commissioner must
5.20approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
5.21affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
5.22the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
5.23days to address the deficiencies. If the authorizer does not address deficiencies to the
5.24commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
5.25commissioner approval precludes an authorizer from chartering the school that is the
5.26subject of this affidavit.
5.27 (c) The authorizer may prevent an approved charter school from opening for
5.28operation if, among other grounds, the charter school violates this section or does not meet
5.29the ready-to-open standards that are part of the authorizer's oversight and evaluation
5.30process or are stipulated in the charter school contract.
5.31(d) The operators authorized to organize and operate a school, before entering into a
5.32contract or other agreement for professional or other services, goods, or facilities, must
5.33incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
5.34chapter 317A and must establish a board of directors composed of at least five members
5.35who are not related parties until a timely election for members of the ongoing charter
5.36school board of directors is held according to the school's articles and bylaws under
6.1paragraph (f). A charter school board of directors must be composed of at least five
6.2members who are not related parties. Staff members employed at the school, including
6.3teachers providing instruction under a contract with a cooperative, and all parents or legal
6.4guardians of children enrolled in the school are the voters eligible to elect the members
6.5of the school's board of directors. A charter school must notify eligible voters of the
6.6school board election dates at least 30 days before the election. Board of director meetings
6.7must comply with chapter 13D.
6.8 (e) Upon the request of an individual, the charter school must make available in
6.9a timely fashion the minutes of meetings of the board of directors, and of members
6.10and committees having any board-delegated authority; financial statements showing all
6.11operations and transactions affecting income, surplus, and deficit during the school's last
6.12annual accounting period; and a balance sheet summarizing assets and liabilities on the
6.13closing date of the accounting period. A charter school also must post on its official Web
6.14site information identifying its authorizer and indicate how to contact that authorizer and
6.15include that same information about its authorizer in other school materials that it makes
6.16available to the public.
6.17(f) Every charter school board member shall attend department-approved training
6.18on board governance, the board's role and responsibilities, employment policies and
6.19practices, and financial management. A board member who does not begin the required
6.20training within six months of being seated and complete the required training within 12
6.21months of being seated on the board is ineligible to continue to serve as a board member.
6.22(g) The ongoing board must be elected before the school completes its third year
6.23of operation. Board elections must be held during a time when school is in session. The
6.24charter school board of directors shall be composed of at least five nonrelated members
6.25and include: (i) at least one licensed teacher employed and serving as a teacher at the
6.26school or a licensed teacher providing instruction under acontact contract between the
6.27charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled
6.28in the charter school who is not employed by the charter school; and (iii) an interested
6.29community member who is not employed by the charter school and does not have a child
6.30enrolled in the school. The board may be a teacher majority board composed of teachers
6.31described in this paragraph. The chief financial officer and the chief administratorare may
6.32only serve as ex-officio nonvoting board members and shall not serve as a voting member
6.33of the board. Charter school employees shall not serve on the board unless item (i) applies.
6.34Contractors providing facilities, goods, or services to a charter school shall not serve on
6.35the board of directors of the charter school. Board bylaws shall outline the process and
7.1procedures for changing the board's governance model, consistent with chapter 317A. A
7.2board may change its governance model only:
7.3(1) by a majority vote of the board of directors and the licensed teachers employed
7.4by the school, including licensed teachers providing instruction under a contract between
7.5the school and a cooperative; and
7.6(2) with the authorizer's approval.
7.7Any change in board governance must conform with the board structure established
7.8under this paragraph.
7.9(h) The granting or renewal of a charter by an authorizer must not be conditioned
7.10upon the bargaining unit status of the employees of the school.
7.11(i) The granting or renewal of a charter school by an authorizer must not be
7.12contingent on the charter school being required to contract, lease, or purchase services
7.13from the authorizer. Any potential contract, lease, or purchase of service from an
7.14authorizer must be disclosed to the commissioner, accepted through an open bidding
7.15process, and be a separate contract from the charter contract. The school must document
7.16the open bidding process. An authorizer must not enter into a contract to provide
7.17management and financial services for a school that it authorizes, unless the school
7.18documents that it received at least two competitive bids.
7.19 (j) An authorizer may permit the board of directors of a charter school to expand
7.20the operation of the charter school to additional sites or to add additional grades at the
7.21school beyond those described in the authorizer's original affidavit as approved by
7.22the commissioner only after submitting a supplemental affidavit for approval to the
7.23commissioner in a form and manner prescribed by the commissioner. The supplemental
7.24affidavit must show that:
7.25 (1) the expansion proposed by the charter school is supported by need and projected
7.26enrollment;
7.27(2) the charter school expansion is warranted, at a minimum, by longitudinal data
7.28demonstrating students' improved academic performance and growth on statewide
7.29assessments under chapter 120B;
7.30 (3) the charter school is fiscally sound and has the financial capacity to implement
7.31the proposed expansion; and
7.32 (4) the authorizer finds that the charter school has the management capacity to
7.33carry out its expansion.
7.34 (k) The commissioner shall have 30 business days to review and comment on the
7.35supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
7.36the supplemental affidavit and the authorizer then has 30 business days to address, to the
8.1commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
8.2may not expand grades or add sites until the commissioner has approved the supplemental
8.3affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
8.4 Sec. 3. Minnesota Statutes 2010, section 124D.10, subdivision 6, is amended to read:
8.5 Subd. 6. Charter contract. The authorization for a charter school must be in the
8.6form of a written contract signed by the authorizer and the board of directors of the charter
8.7school. The contract must be completed within 45 business days of the commissioner's
8.8approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
8.9copy of the signed charter contract within ten business days of its execution. The contract
8.10for a charter school must be in writing and contain at least the following:
8.11(1) a declaration of the purposes in subdivision 1 that the school intends to carry out
8.12and how the school will report its implementation of those purposes;
8.13(2) a description of the school program and the specific academic and nonacademic
8.14outcomes that pupils must achieve;
8.15(3) a statement of admission policies and procedures;
8.16(4) a governance, management, and administration plan for the school;
8.17(5) signed agreements from charter school board members to comply with all
8.18federal and state laws governing organizational, programmatic, and financial requirements
8.19applicable to charter schools;
8.20(6) the criteria, processes, and procedures that the authorizer will use for ongoing
8.21oversight of operational, financial, and academic performance;
8.22(7) the performance evaluation that is a prerequisite for reviewing a charter contract
8.23under subdivision 15;
8.24(8) types and amounts of insurance liability coverage to be obtained by the charter
8.25school;
8.26(9) the term of the contract, which may be up to three years for an initial contract
8.27plus an additional preoperational planning year, and up to five years for a renewed contract
8.28if warranted by the school's academic, financial, and operational performance;
8.29(10) how the board of directors or the operators of the charter school will provide
8.30special instruction and services for children with a disability under sections125A.03
8.31to
125A.24 , and
125A.65 , a description of the financial parameters within which the
8.32charter school will operate to provide the special instruction and services to children
8.33with a disability;
8.34(11) the process and criteria the authorizer intends to use to monitor and evaluate the
8.35fiscal and student performance of the charter school, consistent with subdivision 15;and
9.1(12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
9.2closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
9.3and that includes establishing the responsibilities of the school board of directors and the
9.4authorizer and notifying the commissioner, authorizer, school district in which the charter
9.5school is located, and parents of enrolled students about the closure, the transfer of student
9.6records to students' resident districts, and procedures for closing financial operations; and
9.7(13) provisions indemnifying and holding harmless the commissioner and the
9.8authorizer, their officers, agents, and employees from any suit, claim, or liability arising
9.9under the contract or from the operation of the charter school.
9.10 Sec. 4. Minnesota Statutes 2010, section 124D.10, subdivision 6a, is amended to read:
9.11 Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
9.12commissioner and its authorizer by December 31 each year.
9.13(b) The charter school, with the assistance of the auditor conducting the audit, must
9.14include with the report a copy of all charter school agreements for corporate management
9.15services. If the entity that provides the professional services to the charter school is
9.16exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
9.17must file with the commissioner by February 15 a copy of the annual return required under
9.18section 6033 of the Internal Revenue Code of 1986.
9.19(c) If the commissioner receives an audit report indicating that a material weakness
9.20exists in the financial reporting systems of a charter school, the charter school must
9.21submit a written report to the commissioner explaining how the material weakness will
9.22be resolved. An entity, as a condition of providing financial services to a charter school,
9.23must agree to make available information about a charter school's financial audit to the
9.24commissioner upon request.
9.25 Sec. 5. Minnesota Statutes 2010, section 124D.10, subdivision 23, is amended to read:
9.26 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
9.27The duration of the contract with an authorizer must be for the term contained in the
9.28contract according to subdivision 6. The authorizer may or may not renew a contract at
9.29the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
9.30terminate a contract during the term of the contract for any ground listed in paragraph
9.31(b). At least 60 days before not renewing or terminating a contract, the authorizer shall
9.32notify the board of directors of the charter school of the proposed action in writing. The
9.33notice shall state the grounds for the proposed action in reasonable detail and that the
9.34charter school's board of directors may request in writing an informal hearing before the
10.1authorizer within 15 business days of receiving notice of nonrenewal or termination of the
10.2contract. Failure by the board of directors to make a written request for a hearing within
10.3the 15-business-day period shall be treated as acquiescence to the proposed action. Upon
10.4receiving a timely written request for a hearing, the authorizer shall give ten business days'
10.5notice to the charter school's board of directors of the hearing date. The authorizer shall
10.6conduct an informal hearing before taking final action. The authorizer shall take final
10.7action to renew or not renew a contract no later than 20 business days before the proposed
10.8date for terminating the contract or the end date of the contract.
10.9(b) A contract may be terminated or not renewed upon any of the following grounds:
10.10(1) failure to meet the requirements for pupil performance contained in the contract;
10.11(2) failure to meet generally accepted standards of fiscal management;
10.12(3) violations of law; or
10.13(4) other good cause shown.
10.14If a contract is terminated or not renewed under this paragraph, the school must be
10.15dissolved according to the applicable provisions of chapter 308A or 317A.
10.16(c) If the authorizer and the charter school board of directors mutually agree to
10.17terminate or not renew the contract, a change in authorizers is allowed if the commissioner
10.18approves the transfer to a different eligible authorizer to authorize the charter school.
10.19Both parties must jointly submit their intent in writing to the commissioner to mutually
10.20terminate the contract. The authorizer that is a party to the existing contract at least must
10.21inform the approved different eligible authorizer about the fiscal and operational status
10.22and student performance of the school. Before the commissioner determines whether
10.23to approve a transfer of authorizer, the commissioner first must determine whether the
10.24charter school and prospective new authorizer can identify and effectively resolve those
10.25circumstances causing the previous authorizer and the charter school to mutually agree
10.26to terminate the contract. If no transfer of authorizer is approved, the school must be
10.27dissolved according to applicable law and the terms of the contract.
10.28(d) The commissioner, after providing reasonable notice to the board of directors of
10.29a charter school and the existing authorizer, and after providing an opportunity for a public
10.30hearing, may terminate the existing contract between the authorizer and the charter school
10.31board if the charter school hasa history of:
10.32(1)failure failed to meet pupil performance requirements contained in the contract
10.33consistent with state law;
10.34(2) displayed financial mismanagement or failure to meet generally accepted
10.35standards of fiscal management;or
10.36(3)repeated or major committed multiple violations of the law; or
11.1(4) committed a major violation of the law, including a violation of the Minnesota or
11.2United States Constitution.
11.3 (e) If the commissioner terminates a charter school contract under subdivision 3,
11.4paragraph (g), the commissioner shall provide the charter school with information about
11.5other eligible authorizers.
11.6 Sec. 6. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
11.7 Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section127A.45,
11.8subdivision 3 , aid payments for the current fiscal year to a charter school shall be of an
11.9equal amount on each of the 24 payment dates.
11.10(b) Notwithstanding paragraph (a) and section127A.45 , for a charter school ceasing
11.11operation on or prior to June 30 of a school year, for the payment periods occurring after
11.12the school ceases serving students, the commissioner shall withhold the estimated state aid
11.13owed the school. The charter school board of directors and authorizer must submit to the
11.14commissioner a closure plan under chapter 308A or 317A, and financial information about
11.15the school's liabilities and assets. After receiving the closure plan, financial information,
11.16an audit of pupil counts, documentation of lease expenditures, and monitoring of special
11.17education expenditures, the commissioner may release cash withheld and may continue
11.18regular payments up to the current year payment percentages if further amounts are
11.19owed. If, based on audits and monitoring, the school received state aid in excess of the
11.20amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
11.21overpayment. For a charter school ceasing operations prior to, or at the end of, a school
11.22year, notwithstanding section127A.45 , subdivision 3, preliminary final payments may
11.23be made after receiving the closure plan, audit of pupil counts, monitoring of special
11.24education expenditures, documentation of lease expenditures, and school submission of
11.25Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
11.26final year of operation. Final payment may be made upon receipt of audited financial
11.27statements under section123B.77 , subdivision 3.
11.28(c) If a charter school fails to comply with the commissioner's directive to return,
11.29for cause, federal or state funds administered by the department, the commissioner may
11.30withhold an amount of state aid sufficient to satisfy the directive.
11.31(d) If, within the timeline under section471.425 , a charter school fails to pay the state
11.32of Minnesota, a school district, intermediate school district, or service cooperative after
11.33receiving an undisputed invoice for goods and services, the commissioner may withhold
11.34an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
11.35aid to the interested state agency, school district, intermediate school district, or service
12.1cooperative. An interested state agency, school district, intermediate school district, or
12.2education cooperative shall notify the commissioner when a charter school fails to pay an
12.3undisputed invoice within 75 business days of when it received the original invoice.
12.4(e) Notwithstanding section127A.45, subdivision 3 , and paragraph (a), 80 percent
12.5of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
12.6of student attendance for that school year.
12.7(f) In order to receive state aid payments under this subdivision, a charter school in
12.8its first three years of operation must submit a school calendar in the form and manner
12.9requested by the department and a quarterly report to the Department of Education. The
12.10report must list each student by grade, show the student's start and end dates, if any,
12.11with the charter school, and for any student participating in a learning year program,
12.12the report must list the hours and times of learning year activities. The report must be
12.13submitted not more than two weeks after the end of the calendar quarter to the department.
12.14The department must develop a Web-based reporting form for charter schools to use
12.15when submitting enrollment reports. A charter school in its fourth and subsequent year of
12.16operation must submit a school calendar and enrollment information to the department in
12.17the form and manner requested by the department.
12.18(g) Notwithstanding sections317A.701 to
317A.791 , upon closure of a charter
12.19school and satisfaction of creditors, cash and investment balances remaining shall be
12.20returned to the state.
12.21(h) A charter school must have a valid, signed contract under section 124D.10,
12.22subdivision 6, on file at the Department of Education at least 15 days prior to the date of
12.23first payment of state aid for the fiscal year.
12.24 Sec. 7. TRANSITIONAL AUTHORIZER.
12.25Notwithstanding other law to the contrary, an authorizer ineligible to authorize a
12.26charter school under paragraph (c) or Minnesota Statutes, section 124D.10, subdivision 3,
12.27paragraph (f), may continue to authorize a charter school until June 30, 2012. A charter
12.28school operating under a contract with an ineligible authorizer that expires after June 30,
12.292012, must enter into a contract with an eligible approved authorizer by June 30, 2012.
12.30EFFECTIVE DATE.This section is effective the day following final enactment.
1.32010, sections 124D.10, subdivisions 3, 4, 6, 6a, 23; 124D.11, subdivision 9.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 124D.10, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
1.8subdivision have the meanings given them.
1.9"Application" to receive approval as an authorizer means the proposal an eligible
1.10authorizer submits to the commissioner under paragraph (c) before that authorizer is able
1.11to submit any affidavit to charter to a school.
1.12"Application" under subdivision 4 means the charter school business plan a
1.13school developer submits to an authorizer for approval to establish a charter school that
1.14documents the school developer's mission statement, school purposes, program design,
1.15financial plan, governance and management structure, and background and experience,
1.16plus any other information the authorizer requests. The application also shall include a
1.17"statement of assurances" of legal compliance prescribed by the commissioner.
1.18"Affidavit" means a written statement the authorizer submits to the commissioner
1.19for approval to establish a charter school under subdivision 4 attesting to its review and
1.20approval process before chartering a school.
1.21"Affidavit" means the form an authorizer submits to the commissioner that is a
1.22precondition to a charter school organizing an affiliated nonprofit building corporation
1.23under subdivision 17a.
1.24(b) The following organizations may authorize one or more charter schools:
2.1(1) a school board; intermediate school district school board; education district
2.2organized under sections
2.3(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code of
2.41986, excluding a nonpublic sectarian or religious institution without an approved affidavit
2.5by the commissioner before July 1, 2009, and any person other than a natural person that
2.6directly or indirectly, through one or more intermediaries, controls, is controlled by, or
2.7is under common control with the nonpublic sectarian or religious institution, and any
2.8other charitable organization under this clause that in the federal IRS Form 1023, Part
2.9IV, describes activities indicating a religious purpose, that:
2.10(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
2.11Foundations;
2.12(ii) is registered with the attorney general's office;
2.13(iii) reports an end-of-year fund balance of at least $2,000,000; and
2.14(iv) is incorporated in the state of Minnesota;
2.15(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
2.16four-year degrees and is registered with the Minnesota Office of Higher Education under
2.17chapter 136A; community college, state university, or technical college governed by the
2.18Board of Trustees of the Minnesota State Colleges and Universities; or the University of
2.19Minnesota; or
2.20(4) a nonprofit corporation subject to chapter 317A, described in section
2.21and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
2.22of 1986, may authorize one or more charter schools if the charter school has operated
2.23for at least three years under a different authorizer and if the nonprofit corporation has
2.24existed for at least 25 years.
2.25(5) no more than three single-purpose authorizers that are charitable, nonsectarian
2.26organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
2.27incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
2.28organizations interested in being approved as an authorizer under this paragraph must
2.29submit a proposal to the commissioner that includes the provisions of paragraph (c) and
2.30a five-year financial plan. Such authorizers shall consider and approve applications
2.31using the criteria provided in subdivision 4 and shall not limit the applications it solicits,
2.32considers, or approves to any single curriculum, learning program, or method.
2.33(c) An eligible authorizer under this subdivision must apply to the commissioner for
2.34approval as an authorizer before submitting any affidavit to the commissioner to charter
2.35a school. The application for approval as a charter school authorizer must demonstrate
2.36the applicant's ability to implement the procedures and satisfy the criteria for chartering a
3.1school under this section. The commissioner must approve or disapprove an application
3.2within 60 business days of the application deadline. If the commissioner disapproves
3.3the application, the commissioner must notify the applicant of the deficiencies and the
3.4applicant then has 20 business days to address the deficiencies to the commissioner's
3.5satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
3.6an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
3.7approval, must consider the applicant's:
3.8(1) capacity and infrastructure;
3.9(2) application criteria and process;
3.10(3) contracting process;
3.11(4) ongoing oversight and evaluation processes; and
3.12(5) renewal criteria and processes.
3.13(d) The
3.14commissioner must include at least the following:
3.15(1) how chartering schools is a way for the organization to carry out its mission;
3.16(2) a description of the capacity of the organization to serve as an authorizer,
3.17including the personnel who will perform the authorizing duties, their qualifications, the
3.18amount of time they will be assigned to this responsibility, and the financial resources
3.19allocated by the organization to this responsibility;
3.20(3) a description of the application and review process the authorizer will use to make
3.21decisions regarding the granting of charters, which will include at least the following:
3.22(i) how the statutory purposes defined in subdivision 1 are addressed;
3.23(ii) the mission, goals, program model, and student performance expectations;
3.24(iii) an evaluation plan for the school that includes criteria for evaluating educational,
3.25organizational, and fiscal plans;
3.26(iv) the school's governance plan;
3.27(v) the financial management plan; and
3.28(vi) the administration and operations plan;
3.29(4) a description of the type of contract it will arrange with the schools it charters
3.30that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
3.31charter school for governing its educational program, controlling its funds, and making
3.32school management decisions;
3.33(5) the process to be used for providing ongoing oversight of the school consistent
3.34with the contract expectations specified in clause (4) that assures that the schools chartered
3.35are complying with both the provisions of applicable law and rules, and with the contract;
4.1(6) the process for making decisions regarding the renewal or termination of
4.2the school's charter based on evidence that demonstrates the academic, organizational,
4.3and financial competency of the school, including its success in increasing student
4.4achievement and meeting the goals of the charter school agreement; and
4.5(7) an assurance specifying that the organization is committed to serving as an
4.6authorizer for the full five-year term.
4.7A disapproved applicant under this paragraph may resubmit an application during a
4.8future application period.
4.9(e) The authorizer must participate in department-approved training.
4.10(f) An authorizer that chartered a school before August 1, 2009, must apply by
4.11
4.12as an authorizer under this section. For purposes of this paragraph, an authorizer that
4.13fails to submit a timely application for commissioner approval is ineligible to
4.14authorize a school.
4.15(g) The commissioner shall review an authorizer's performance every five years in
4.16a manner and form determined by the commissioner and may review an authorizer's
4.17performance more frequently at the commissioner's own initiative or at the request of a
4.18charter school operator, charter school board member, or other interested party. The
4.19commissioner, after completing the review, shall transmit a report with findings to the
4.20authorizer. If, consistent with this section, the commissioner finds that an authorizer
4.21has not fulfilled the requirements of this section, the commissioner may subject the
4.22authorizer to corrective action, which may include terminating the contract with the
4.23charter school board of directors of a school it chartered. The commissioner must notify
4.24the authorizer in writing of any findings that may subject the authorizer to corrective
4.25action and the authorizer then has 15 business days to request an informal hearing before
4.26the commissioner takes corrective action.
4.27(h) The commissioner may at any time take corrective action against an authorizer,
4.28including terminating an authorizer's ability to charter a school for:
4.29(1) failing to demonstrate the criteria under paragraph (c) under which the
4.30commissioner approved the authorizer;
4.31(2) violating a term of the chartering contract between the authorizer and the charter
4.32school board of directors;
4.33(3) unsatisfactory performance as an approved authorizer; or
4.34(4) any good cause shown.
4.35EFFECTIVE DATE.This section is effective the day following final enactment.
5.1 Sec. 2. Minnesota Statutes 2010, section 124D.10, subdivision 4, is amended to read:
5.2 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
5.3a school developer, may charter a licensed teacher under section
5.41
5.6authorizer's affidavit under paragraph (b). The school must be organized and operated
5.7as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
5.8the provisions under the applicable chapter shall apply to the school except as provided
5.9in this section.
5.10Notwithstanding sections
5.11section and section
5.12charter school.
5.13 (b) Before the operators may establish and operate a school, the authorizer must file
5.14an affidavit with the commissioner stating its intent to charter a school. An authorizer
5.15must file a separate affidavit for each school it intends to charter. The affidavit must
5.16state the terms and conditions under which the authorizer would charter a school and
5.17how the authorizer intends to oversee the fiscal and student performance of the charter
5.18school and to comply with the terms of the written contract between the authorizer
5.19and the charter school board of directors under subdivision 6. The commissioner must
5.20approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
5.21affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
5.22the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
5.23days to address the deficiencies. If the authorizer does not address deficiencies to the
5.24commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
5.25commissioner approval precludes an authorizer from chartering the school that is the
5.26subject of this affidavit.
5.27 (c) The authorizer may prevent an approved charter school from opening for
5.28operation if, among other grounds, the charter school violates this section or does not meet
5.29the ready-to-open standards that are part of the authorizer's oversight and evaluation
5.30process or are stipulated in the charter school contract.
5.31(d) The operators authorized to organize and operate a school, before entering into a
5.32contract or other agreement for professional or other services, goods, or facilities, must
5.33incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
5.34chapter 317A and must establish a board of directors composed of at least five members
5.35who are not related parties until a timely election for members of the ongoing charter
5.36school board of directors is held according to the school's articles and bylaws under
6.1paragraph (f). A charter school board of directors must be composed of at least five
6.2members who are not related parties. Staff members employed at the school, including
6.3teachers providing instruction under a contract with a cooperative, and all parents or legal
6.4guardians of children enrolled in the school are the voters eligible to elect the members
6.5of the school's board of directors. A charter school must notify eligible voters of the
6.6school board election dates at least 30 days before the election. Board of director meetings
6.7must comply with chapter 13D.
6.8 (e) Upon the request of an individual, the charter school must make available in
6.9a timely fashion the minutes of meetings of the board of directors, and of members
6.10and committees having any board-delegated authority; financial statements showing all
6.11operations and transactions affecting income, surplus, and deficit during the school's last
6.12annual accounting period; and a balance sheet summarizing assets and liabilities on the
6.13closing date of the accounting period. A charter school also must post on its official Web
6.14site information identifying its authorizer and indicate how to contact that authorizer and
6.15include that same information about its authorizer in other school materials that it makes
6.16available to the public.
6.17(f) Every charter school board member shall attend department-approved training
6.18on board governance, the board's role and responsibilities, employment policies and
6.19practices, and financial management. A board member who does not begin the required
6.20training within six months of being seated and complete the required training within 12
6.21months of being seated on the board is ineligible to continue to serve as a board member.
6.22(g) The ongoing board must be elected before the school completes its third year
6.23of operation. Board elections must be held during a time when school is in session. The
6.24charter school board of directors shall be composed of at least five nonrelated members
6.25and include: (i) at least one licensed teacher employed and serving as a teacher at the
6.26school or a licensed teacher providing instruction under a
6.27charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled
6.28in the charter school who is not employed by the charter school; and (iii) an interested
6.29community member who is not employed by the charter school and does not have a child
6.30enrolled in the school. The board may be a teacher majority board composed of teachers
6.31described in this paragraph. The chief financial officer and the chief administrator
6.32only serve as ex-officio nonvoting board members and shall not serve as a voting member
6.33of the board. Charter school employees shall not serve on the board unless item (i) applies.
6.34Contractors providing facilities, goods, or services to a charter school shall not serve on
6.35the board of directors of the charter school. Board bylaws shall outline the process and
7.1procedures for changing the board's governance model, consistent with chapter 317A. A
7.2board may change its governance model only:
7.3(1) by a majority vote of the board of directors and the licensed teachers employed
7.4by the school, including licensed teachers providing instruction under a contract between
7.5the school and a cooperative; and
7.6(2) with the authorizer's approval.
7.7Any change in board governance must conform with the board structure established
7.8under this paragraph.
7.9(h) The granting or renewal of a charter by an authorizer must not be conditioned
7.10upon the bargaining unit status of the employees of the school.
7.11(i) The granting or renewal of a charter school by an authorizer must not be
7.12contingent on the charter school being required to contract, lease, or purchase services
7.13from the authorizer. Any potential contract, lease, or purchase of service from an
7.14authorizer must be disclosed to the commissioner, accepted through an open bidding
7.15process, and be a separate contract from the charter contract. The school must document
7.16the open bidding process. An authorizer must not enter into a contract to provide
7.17management and financial services for a school that it authorizes, unless the school
7.18documents that it received at least two competitive bids.
7.19 (j) An authorizer may permit the board of directors of a charter school to expand
7.20the operation of the charter school to additional sites or to add additional grades at the
7.21school beyond those described in the authorizer's original affidavit as approved by
7.22the commissioner only after submitting a supplemental affidavit for approval to the
7.23commissioner in a form and manner prescribed by the commissioner. The supplemental
7.24affidavit must show that:
7.25 (1) the expansion proposed by the charter school is supported by need and projected
7.26enrollment;
7.27(2) the charter school expansion is warranted, at a minimum, by longitudinal data
7.28demonstrating students' improved academic performance and growth on statewide
7.29assessments under chapter 120B;
7.30 (3) the charter school is fiscally sound and has the financial capacity to implement
7.31the proposed expansion; and
7.32 (4) the authorizer finds that the charter school has the management capacity to
7.33carry out its expansion.
7.34 (k) The commissioner shall have 30 business days to review and comment on the
7.35supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
7.36the supplemental affidavit and the authorizer then has 30 business days to address, to the
8.1commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
8.2may not expand grades or add sites until the commissioner has approved the supplemental
8.3affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
8.4 Sec. 3. Minnesota Statutes 2010, section 124D.10, subdivision 6, is amended to read:
8.5 Subd. 6. Charter contract. The authorization for a charter school must be in the
8.6form of a written contract signed by the authorizer and the board of directors of the charter
8.7school. The contract must be completed within 45 business days of the commissioner's
8.8approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
8.9copy of the signed charter contract within ten business days of its execution. The contract
8.10for a charter school must be in writing and contain at least the following:
8.11(1) a declaration of the purposes in subdivision 1 that the school intends to carry out
8.12and how the school will report its implementation of those purposes;
8.13(2) a description of the school program and the specific academic and nonacademic
8.14outcomes that pupils must achieve;
8.15(3) a statement of admission policies and procedures;
8.16(4) a governance, management, and administration plan for the school;
8.17(5) signed agreements from charter school board members to comply with all
8.18federal and state laws governing organizational, programmatic, and financial requirements
8.19applicable to charter schools;
8.20(6) the criteria, processes, and procedures that the authorizer will use for ongoing
8.21oversight of operational, financial, and academic performance;
8.22(7) the performance evaluation that is a prerequisite for reviewing a charter contract
8.23under subdivision 15;
8.24(8) types and amounts of insurance liability coverage to be obtained by the charter
8.25school;
8.26(9) the term of the contract, which may be up to three years for an initial contract
8.27plus an additional preoperational planning year, and up to five years for a renewed contract
8.28if warranted by the school's academic, financial, and operational performance;
8.29(10) how the board of directors or the operators of the charter school will provide
8.30special instruction and services for children with a disability under sections
8.32charter school will operate to provide the special instruction and services to children
8.33with a disability;
8.34(11) the process and criteria the authorizer intends to use to monitor and evaluate the
8.35fiscal and student performance of the charter school, consistent with subdivision 15;
9.1(12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
9.2closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
9.3and that includes establishing the responsibilities of the school board of directors and the
9.4authorizer and notifying the commissioner, authorizer, school district in which the charter
9.5school is located, and parents of enrolled students about the closure, the transfer of student
9.6records to students' resident districts, and procedures for closing financial operations; and
9.7(13) provisions indemnifying and holding harmless the commissioner and the
9.8authorizer, their officers, agents, and employees from any suit, claim, or liability arising
9.9under the contract or from the operation of the charter school.
9.10 Sec. 4. Minnesota Statutes 2010, section 124D.10, subdivision 6a, is amended to read:
9.11 Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
9.12commissioner and its authorizer by December 31 each year.
9.13(b) The charter school, with the assistance of the auditor conducting the audit, must
9.14include with the report a copy of all charter school agreements for corporate management
9.15services. If the entity that provides the professional services to the charter school is
9.16exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
9.17must file with the commissioner by February 15 a copy of the annual return required under
9.18section 6033 of the Internal Revenue Code of 1986.
9.19(c) If the commissioner receives an audit report indicating that a material weakness
9.20exists in the financial reporting systems of a charter school, the charter school must
9.21submit a written report to the commissioner explaining how the material weakness will
9.22be resolved. An entity, as a condition of providing financial services to a charter school,
9.23must agree to make available information about a charter school's financial audit to the
9.24commissioner upon request.
9.25 Sec. 5. Minnesota Statutes 2010, section 124D.10, subdivision 23, is amended to read:
9.26 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
9.27The duration of the contract with an authorizer must be for the term contained in the
9.28contract according to subdivision 6. The authorizer may or may not renew a contract at
9.29the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
9.30terminate a contract during the term of the contract for any ground listed in paragraph
9.31(b). At least 60 days before not renewing or terminating a contract, the authorizer shall
9.32notify the board of directors of the charter school of the proposed action in writing. The
9.33notice shall state the grounds for the proposed action in reasonable detail and that the
9.34charter school's board of directors may request in writing an informal hearing before the
10.1authorizer within 15 business days of receiving notice of nonrenewal or termination of the
10.2contract. Failure by the board of directors to make a written request for a hearing within
10.3the 15-business-day period shall be treated as acquiescence to the proposed action. Upon
10.4receiving a timely written request for a hearing, the authorizer shall give ten business days'
10.5notice to the charter school's board of directors of the hearing date. The authorizer shall
10.6conduct an informal hearing before taking final action. The authorizer shall take final
10.7action to renew or not renew a contract no later than 20 business days before the proposed
10.8date for terminating the contract or the end date of the contract.
10.9(b) A contract may be terminated or not renewed upon any of the following grounds:
10.10(1) failure to meet the requirements for pupil performance contained in the contract;
10.11(2) failure to meet generally accepted standards of fiscal management;
10.12(3) violations of law; or
10.13(4) other good cause shown.
10.14If a contract is terminated or not renewed under this paragraph, the school must be
10.15dissolved according to the applicable provisions of chapter 308A or 317A.
10.16(c) If the authorizer and the charter school board of directors mutually agree to
10.17terminate or not renew the contract, a change in authorizers is allowed if the commissioner
10.18approves the transfer to a different eligible authorizer to authorize the charter school.
10.19Both parties must jointly submit their intent in writing to the commissioner to mutually
10.20terminate the contract. The authorizer that is a party to the existing contract at least must
10.21inform the approved different eligible authorizer about the fiscal and operational status
10.22and student performance of the school. Before the commissioner determines whether
10.23to approve a transfer of authorizer, the commissioner first must determine whether the
10.24charter school and prospective new authorizer can identify and effectively resolve those
10.25circumstances causing the previous authorizer and the charter school to mutually agree
10.26to terminate the contract. If no transfer of authorizer is approved, the school must be
10.27dissolved according to applicable law and the terms of the contract.
10.28(d) The commissioner, after providing reasonable notice to the board of directors of
10.29a charter school and the existing authorizer, and after providing an opportunity for a public
10.30hearing, may terminate the existing contract between the authorizer and the charter school
10.31board if the charter school has
10.32(1)
10.33consistent with state law;
10.34(2) displayed financial mismanagement or failure to meet generally accepted
10.35standards of fiscal management;
10.36(3)
11.1(4) committed a major violation of the law, including a violation of the Minnesota or
11.2United States Constitution.
11.3 (e) If the commissioner terminates a charter school contract under subdivision 3,
11.4paragraph (g), the commissioner shall provide the charter school with information about
11.5other eligible authorizers.
11.6 Sec. 6. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
11.7 Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
11.8subdivision 3
11.9equal amount on each of the 24 payment dates.
11.10(b) Notwithstanding paragraph (a) and section
11.11operation on or prior to June 30 of a school year, for the payment periods occurring after
11.12the school ceases serving students, the commissioner shall withhold the estimated state aid
11.13owed the school. The charter school board of directors and authorizer must submit to the
11.14commissioner a closure plan under chapter 308A or 317A, and financial information about
11.15the school's liabilities and assets. After receiving the closure plan, financial information,
11.16an audit of pupil counts, documentation of lease expenditures, and monitoring of special
11.17education expenditures, the commissioner may release cash withheld and may continue
11.18regular payments up to the current year payment percentages if further amounts are
11.19owed. If, based on audits and monitoring, the school received state aid in excess of the
11.20amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
11.21overpayment. For a charter school ceasing operations prior to, or at the end of, a school
11.22year, notwithstanding section
11.23be made after receiving the closure plan, audit of pupil counts, monitoring of special
11.24education expenditures, documentation of lease expenditures, and school submission of
11.25Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
11.26final year of operation. Final payment may be made upon receipt of audited financial
11.27statements under section
11.28(c) If a charter school fails to comply with the commissioner's directive to return,
11.29for cause, federal or state funds administered by the department, the commissioner may
11.30withhold an amount of state aid sufficient to satisfy the directive.
11.31(d) If, within the timeline under section
11.32of Minnesota, a school district, intermediate school district, or service cooperative after
11.33receiving an undisputed invoice for goods and services, the commissioner may withhold
11.34an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
11.35aid to the interested state agency, school district, intermediate school district, or service
12.1cooperative. An interested state agency, school district, intermediate school district, or
12.2education cooperative shall notify the commissioner when a charter school fails to pay an
12.3undisputed invoice within 75 business days of when it received the original invoice.
12.4(e) Notwithstanding section
12.5of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
12.6of student attendance for that school year.
12.7(f) In order to receive state aid payments under this subdivision, a charter school in
12.8its first three years of operation must submit a school calendar in the form and manner
12.9requested by the department and a quarterly report to the Department of Education. The
12.10report must list each student by grade, show the student's start and end dates, if any,
12.11with the charter school, and for any student participating in a learning year program,
12.12the report must list the hours and times of learning year activities. The report must be
12.13submitted not more than two weeks after the end of the calendar quarter to the department.
12.14The department must develop a Web-based reporting form for charter schools to use
12.15when submitting enrollment reports. A charter school in its fourth and subsequent year of
12.16operation must submit a school calendar and enrollment information to the department in
12.17the form and manner requested by the department.
12.18(g) Notwithstanding sections
12.19school and satisfaction of creditors, cash and investment balances remaining shall be
12.20returned to the state.
12.21(h) A charter school must have a valid, signed contract under section 124D.10,
12.22subdivision 6, on file at the Department of Education at least 15 days prior to the date of
12.23first payment of state aid for the fiscal year.
12.24 Sec. 7. TRANSITIONAL AUTHORIZER.
12.25Notwithstanding other law to the contrary, an authorizer ineligible to authorize a
12.26charter school under paragraph (c) or Minnesota Statutes, section 124D.10, subdivision 3,
12.27paragraph (f), may continue to authorize a charter school until June 30, 2012. A charter
12.28school operating under a contract with an ineligible authorizer that expires after June 30,
12.292012, must enter into a contract with an eligible approved authorizer by June 30, 2012.
12.30EFFECTIVE DATE.This section is effective the day following final enactment.
