Bill Text: MN HF2706 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Charter school provisions modified.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2014-03-04 - Introduction and first reading, referred to Education Policy [HF2706 Detail]
Download: Minnesota-2013-HF2706-Introduced.html
1.2relating to education; modifying certain charter school provisions;amending
1.3Minnesota Statutes 2013 Supplement, section 124D.10, subdivisions 4, 6a, 8,
1.49, 17a, 17b.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4,
1.7is amended to read:
1.8 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
1.9a school developer, may charter a licensed teacher under section122A.18, subdivision
1.101 , or a group of individuals that includes one or more licensed teachers under section
1.11122A.18, subdivision 1
, to operate a school subject to the commissioner's approval of the
1.12authorizer's affidavit under paragraph (b). The school must be organized and operated as a
1.13nonprofit corporation under chapter 317A and the provisions under the applicable chapter
1.14shall apply to the school except as provided in this section.
1.15 Notwithstanding sections465.717 and
465.719 , a school district, subject to this
1.16section and section124D.11 , may create a corporation for the purpose of establishing a
1.17charter school.
1.18 (b) Before the operators may establish and operate a school, the authorizer must file
1.19an affidavit with the commissioner stating its intent to charter a school. An authorizer
1.20must file a separate affidavit for each school it intends to charter. The affidavit must state
1.21the terms and conditions under which the authorizer would charter a school and how the
1.22authorizer intends to oversee the fiscal and student performance of the charter school and to
1.23comply with the terms of the written contract between the authorizer and the charter school
1.24board of directors under subdivision 6. The commissioner must approve or disapprove the
2.1authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
2.2disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies in
2.3the affidavit and the authorizer then has 20 business days to address the deficiencies. Upon
2.4receipt of the authorizer's response to the deficiencies in the affidavit, the commissioner
2.5must notify the authorizer of the final approval or disapproval within 15 business days.
2.6If the authorizer does not address deficiencies to the commissioner's satisfaction, the
2.7commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
2.8authorizer from chartering the school that is the subject of this affidavit.
2.9 (c) The authorizer may prevent an approved charter school from opening for
2.10operation if, among other grounds, the charter school violates this section or does not meet
2.11the ready-to-open standards that are part of the authorizer's oversight and evaluation
2.12process or are stipulated in the charter school contract.
2.13 (d) The operators authorized to organize and operate a school, before entering into
2.14a contract or other agreement for professional or other services, goods, or facilities,
2.15must incorporate as a nonprofit corporation under chapter 317A and must establish a
2.16board of directors composed of at least five members who are not related parties until a
2.17timely election for members of the ongoing charter school board of directors is held
2.18according to the school's articles and bylaws under paragraph (f). A charter school board
2.19of directors must be composed of at least five members who are not related parties.
2.20Staff members employed at the school, including teachers providing instruction under a
2.21contract with a cooperative, members of the board of directors, and all parents or legal
2.22guardians of children enrolled in the school are the voters eligible to elect the members
2.23of the school's board of directors. A charter school must notify eligible voters of the
2.24school board election dates at least 30 days before the election. Board of director meetings
2.25must comply with chapter 13D.
2.26 (e) A charter school shall publish and maintain on the school's official Web site: (1)
2.27the minutes of meetings of the board of directors, and of members and committees having
2.28any board-delegated authority, for at least one calendar year from the date of publication;
2.29(2) directory information for members of the board of directors and committees having
2.30board-delegated authority; and (3) identifying and contact information for the school's
2.31authorizer. Identifying and contact information for the school's authorizer must be
2.32included in other school materials made available to the public. Upon request of an
2.33individual, the charter school must also make available in a timely fashion financial
2.34statements showing all operations and transactions affecting income, surplus, and deficit
2.35during the school's last annual accounting period; and a balance sheet summarizing assets
2.36and liabilities on the closing date of the accounting period. A charter school also must
3.1include that same information about its authorizer in other school materials that it makes
3.2available to the public.
3.3 (f) Every charter school board member shall attend annual training throughout the
3.4member's term on the board. All new board members shall attend initial training on
3.5the board's role and responsibilities, employment policies and practices, and financial
3.6management. A new board member who does not begin the required initial training within
3.7six months after being seated and complete that training within 12 months of being seated
3.8on the board is automatically ineligible to continue to serve as a board member. The
3.9school shall include in its annual report the training attended by each board member
3.10during the previous year.
3.11 (g) The ongoing board must be elected before the school completes its third year of
3.12operation. Board elections must be held during the school year but may not be conducted
3.13on days when the school is closed for holidays, breaks, or vacations. The charter school
3.14board of directors shall be composed of at least five nonrelated members and include: (i)
3.15at least one licensed teacher employed as a teacher at the school or providing instruction
3.16under contract between the charter school and a cooperative; (ii) at least one parent or
3.17legal guardian of a student enrolled in the charter school who is not an employee of
3.18the charter school; and (iii) at least one interested community member who resides in
3.19Minnesota and is not employed by the charter school and does not have a child enrolled
3.20in the school. The board may include a majority of teachers described in this paragraph
3.21or parents or community members, or it may have no clear majority. The chief financial
3.22officer and the chief administrator may only serve as ex-officio nonvoting board members.
3.23No charter school employees shall serve on the board other than teachers under item (i).
3.24Contractors providing facilities, goods, or services to a charter school shall not serve on
3.25the board of directors of the charter school. Board bylaws shall outline the process and
3.26procedures for changing the board's governance structure, consistent with chapter 317A.
3.27A board may change its governance structure only:
3.28 (1) by a majority vote of the board of directors and a majority vote of the licensed
3.29teachers employed by the school as teachers, including licensed teachers providing
3.30instruction under a contract between the school and a cooperative; and
3.31 (2) with the authorizer's approval.
3.32 Any change in board governance structure must conform with the composition of
3.33the board established under this paragraph.
3.34 (h) The granting or renewal of a charter by an authorizer must not be conditioned
3.35upon the bargaining unit status of the employees of the school.
4.1 (i) The granting or renewal of a charter school by an authorizer must not be
4.2contingent on the charter school being required to contract, lease, or purchase services
4.3from the authorizer. Any potential contract, lease, or purchase of service from an
4.4authorizer must be disclosed to the commissioner, accepted through an open bidding
4.5process, and be a separate contract from the charter contract. The school must document
4.6the open bidding process. An authorizer must not enter into a contract to provide
4.7management and financial services for a school that it authorizes, unless the school
4.8documents that it received at least two competitive bids.
4.9(j) An authorizer may permit the board of directors of a charter school to expand the
4.10operation of the charter school to additional sites or grades at the school beyond those
4.11described in the authorizer's original affidavit as approved by the commissioner only
4.12after submitting a supplemental affidavit for approval to the commissioner in a form and
4.13manner prescribed by the commissioner. The supplemental affidavit must document that:
4.14(1) the proposed expansion plan demonstrates need and projected enrollment;
4.15(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
4.16students' improved academic performance and growth on statewide assessments under
4.17chapter 120B;
4.18(3) the charter school is financially sound and the financing it needs to implement
4.19the proposed expansion exists; and
4.20(4) the charter school has the governance structure and management capacity to
4.21carry out its expansion.
4.22(j) A charter school may apply to the authorizer to amend the school charter to
4.23expand the operation of the school to additional grades beyond those defined in the original
4.24charter as approved by the commissioner. Upon approval of the school's application, the
4.25authorizer shall submit a supplementary affidavit in the form and manner prescribed
4.26by the commissioner. The supplementary affidavit must document that the school has
4.27demonstrated to the satisfaction of the authorizer the following:
4.28(1) the need for the expansion with supporting long-range enrollment projections;
4.29(2) a record of demonstrated longitudinal student academic performance and growth
4.30on statewide assessments under chapter 120B or on other academic assessments that
4.31measure longitudinal student performance and growth approved by the charter school's
4.32board of directors and agreed upon with the authorizer;
4.33(3) a sound history of school finances and a finance plan to implement the expansion
4.34that will not imperil the school's sustainability; and
4.35(4) a plan for the administrative and management capacity to implement the
4.36expansion.
5.1 (k) The commissioner shall have 30 business days to review and comment on the
5.2supplemental affidavit. The commissioner shall notify the authorizer in writing of any
5.3deficiencies in the supplemental affidavit and the authorizer then has 20 business days
5.4to address, to the commissioner's satisfaction, any deficiencies in the supplemental
5.5affidavit. Upon receipt of the authorizer's response to the deficiencies in the affidavit, the
5.6commissioner must notify the authorizer of the final approval or disapproval with 15
5.7business days. The school may not expand grades or add sites until the commissioner has
5.8approved the supplemental affidavit. The commissioner's approval or disapproval of
5.9a supplemental affidavit is final.
5.10 Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 6a, is
5.11amended to read:
5.12 Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
5.13commissioner and its authorizer by December 31 each year.
5.14 (b) The charter school, with the assistance of the auditor conducting the audit,
5.15must include with the report, as supplemental information, a copy ofall charter school
5.16agreements for corporate management services, including parent company or other
5.17administrative, financial, and staffing services management agreements with a charter
5.18management organization, or an educational management organization. The agreements
5.19must detail the terms of the agreement, including the services provided and the annual
5.20costs for those services. If the entity that provides the professional services to the charter
5.21school is exempt from taxation under section 501 of the Internal Revenue Code of 1986,
5.22that entity must file with the commissioner by February 15 a copy of the annual return
5.23required under section 6033 of the Internal Revenue Code of 1986.
5.24 (c) A charter school independent audit report shall include audited financial data of
5.25an affiliated building corporation or other component unit.
5.26 (d) If the audit report finds that a material weakness exists in the financial reporting
5.27systems of a charter school, the charter school must submit a written report to the
5.28commissioner explaining how the material weakness will be resolved. An auditor, as a
5.29condition of providing financial services to a charter school, must agree to make available
5.30information about a charter school's financial audit to the commissioner and authorizer
5.31upon request.
5.32 Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
5.33amended to read:
6.1 Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
6.2federal, state, and local health and safety requirements applicable to school districts.
6.3 (b) A school must comply with statewide accountability requirements governing
6.4standards and assessments in chapter 120B.
6.5 (c) A school authorized by a school board may be located in any district, unless the
6.6school board of the district of the proposed location disapproves by written resolution.
6.7 (d) A charter school must be nonsectarian in its programs, admission policies,
6.8employment practices, and all other operations. An authorizer may not authorize a charter
6.9school or program that is affiliated with a nonpublic sectarian school or a religious
6.10institution. A charter school student must be released for religious instruction, consistent
6.11with section120A.22, subdivision 12 , clause (3).
6.12 (e) Charter schools must not be used as a method of providing education or
6.13generating revenue for students who are being home-schooled. This paragraph does not
6.14apply to shared time aid under section126C.19 .
6.15 (f) The primary focus of a charter school must be to provide a comprehensive
6.16program of instruction for at least one grade or age group fromfive prekindergarten
6.17 through 18 years of age. Once a student is enrolled in the school, the student is considered
6.18enrolled in the school until the student formally withdraws or enrollment is revoked under
6.19the Pupil Fair Dismissal Act in sections 121A.40 to 121A.56. Instruction may be provided
6.20to peopleyounger than five years and older than 18 years of age.
6.21 (g) A charter school may not charge tuition.
6.22 (h) A charter school is subject to and must comply with chapter 363A and section
6.23121A.04
.
6.24 (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
6.25Act, sections121A.40 to
121A.56 , and the Minnesota Public School Fee Law, sections
6.26123B.34
to
123B.39 .
6.27 (j) A charter school is subject to the same financial audits, audit procedures, and
6.28audit requirements as a district, except as required under subdivision 6a. Audits must be
6.29conducted in compliance with generally accepted governmental auditing standards, the
6.30federal Single Audit Act, if applicable, and section6.65 . A charter school is subject
6.31to and must comply with sections15.054 ;
118A.01 ;
118A.02 ;
118A.03 ;
118A.04 ;
6.32118A.05
;
118A.06 ;
471.38 ;
471.391 ;
471.392 ; and
471.425 . The audit must comply with
6.33the requirements of sections123B.75 to
123B.83 , except to the extent deviations are
6.34necessary because of the program at the school. Deviations must be approved by the
6.35commissioner and authorizer. The Department of Education, state auditor, legislative
6.36auditor, or authorizer may conduct financial, program, or compliance audits. A charter
7.1school determined to be in statutory operating debt under sections123B.81 to
123B.83
7.2must submit a plan under section
123B.81, subdivision 4 .
7.3 (k) A charter school is a district for the purposes of tort liability under chapter 466.
7.4 (l) A charter school must comply with chapters 13 and 13D; and sections120A.22,
7.5subdivision 7 ;
121A.75 ; and
260B.171 , subdivisions 3 and 5.
7.6 (m) A charter school is subject to the Pledge of Allegiance requirement under
7.7section121A.11, subdivision 3 .
7.8 (n) A charter school offering online courses or programs must comply with section
7.9124D.095
.
7.10 (o) A charter school and charter school board of directors are subject to chapter 181.
7.11 (p) A charter school must comply with section120A.22, subdivision 7 , governing
7.12the transfer of students' educational records and sections138.163 and
138.17 governing
7.13the management of local records.
7.14 (q) A charter school that provides early childhood health and developmental
7.15screening must comply with sections121A.16 to
121A.19 .
7.16 (r) A charter school that provides school-sponsored youth athletic activities must
7.17comply with section 121A.38.
7.18 (s) A charter school is subject to and must comply with continuing truant notification
7.19under section260A.03 .
7.20(t) A charter school must develop and implement a teacher evaluation and peer review
7.21process under section122A.40, subdivision 8 , paragraph (b), clauses (2) to (12) (3) to (11).
7.22(u) A charter school must adopt a policy, plan, budget, and process, consistent with
7.23section120B.11 , to review curriculum, instruction, and student achievement and strive
7.24for the world's best workforce.
7.25 Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 9, is
7.26amended to read:
7.27 Subd. 9. Admission requirements. (a) A charter school may limit admission to:
7.28 (1) pupils within an age group or grade level;
7.29 (2) pupils who are eligible to participate in the graduation incentives program under
7.30section124D.68 ; or
7.31 (3) residents of a specific geographic area in which the school is located when the
7.32majority of students served by the school are members of underserved populations.
7.33 (b) A charter school shall enroll an eligible pupil who submits a timely application,
7.34unless the number of applications exceeds the capacity of a program, class, grade level, or
7.35building. In this case, pupils must be accepted by lot. The charter school must develop
8.1and publish, including on its Web site, a lottery policy and process that it must use when
8.2accepting pupils by lot.
8.3 (c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
8.4and to a foster child of that pupil's parents and may give preference for enrolling children
8.5of the school's staff before accepting other pupils by lot. A charter school shall give
8.6enrollment preference to an enrolled prekindergarten student who enrolls in kindergarten
8.7if the prekindergarten student is a sibling of an enrolled pupil and to a foster child of that
8.8pupil's parents and may also give preference for enrolling children of the school's staff
8.9before accepting other pupils by lot.
8.10 (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
8.11unless the pupil is at least five years of age on September 1 of the calendar year in which
8.12the school year for which the pupil seeks admission commences; or (2) as a first grade
8.13student, unless the pupil is at least six years of age on September 1 of the calendar year in
8.14which the school year for which the pupil seeks admission commences or has completed
8.15kindergarten; except that a charter school may establish and publish on its Web site a
8.16policy for admission of selected pupils at an earlier age, consistent with the enrollment
8.17process in paragraphs (b) and (c).
8.18 (e) Except as permitted in paragraph (d), a charter school may not limit admission
8.19to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
8.20athletic ability and may not establish any criteria or requirements for admission that are
8.21inconsistent with this subdivision.
8.22 (f) The charter school shall not distribute any services or goods of value to students,
8.23parents, or guardians as an inducement, term, or condition of enrolling a student in a
8.24charter school.
8.25 Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 17a,
8.26is amended to read:
8.27 Subd. 17a. Affiliated nonprofit building corporation. (a)Before A charter school
8.28may organize an affiliated nonprofit building corporation(i) (1) to renovate or purchase
8.29and renovate an existing facility to serve as a school or(ii) (2) to expand an existing
8.30building or construct a new school facility, an authorizer must submit an affidavit to the
8.31commissioner for approval in the form and manner the commissioner prescribes, and
8.32consistent with paragraphs (b) and (c) or (d). if the charter school:
8.33(i) has been in operation for at least six years;
8.34(ii) has a net unreserved general fund balance as of June 30 in the preceding three
8.35years;
9.1(iii) has long-range strategic and financial plans that include enrollment projections
9.2for at least five years;
9.3(iv) completes a feasibility study of facility options that outlines the benefits and
9.4costs of the options; and
9.5(v) has a plan for the purchase, renovation, or new construction which describes
9.6the parameters and budget for the project.
9.7 (b) An affiliated nonprofit building corporation under this subdivision must:
9.8 (1) be incorporated under section 317A;
9.9 (2) comply with applicable Internal Revenue Service regulations, including
9.10regulations for "supporting organizations" as defined by the Internal Revenue Service;
9.11(3) post on the school Web site the name, mailing address, bylaws, minutes of board
9.12meetings, and the names of the current board of directors of the affiliated nonprofit
9.13building corporation;
9.14(3) (4) submit to the commissioner each fiscal year a list of current board members
9.15and a copy of its annual audit by December 31 of each year; and
9.16(4) (5) comply with government data practices law under chapter 13.
9.17 (c) An affiliated nonprofit building corporation must not serve as the leasing agent
9.18for property or facilities it does not own. A charter school that leases a facility from an
9.19affiliated nonprofit building corporation that does not own the leased facility is ineligible
9.20to receive charter school lease aid. The state is immune from liability resulting from a
9.21contract between a charter school and an affiliated nonprofit building corporation.
9.22(c) A charter school may organize an affiliated nonprofit building corporation to
9.23renovate or purchase an existing facility to serve as a school if the charter school:
9.24(1) has been operating for at least five consecutive school years;
9.25(2) has had a net positive unreserved general fund balance as of June 30 in the
9.26preceding five fiscal years;
9.27(3) has a long-range strategic and financial plan;
9.28(4) completes a feasibility study of available buildings;
9.29(5) documents enrollment projections and the need to use an affiliated building
9.30corporation to renovate or purchase an existing facility to serve as a school; and
9.31(6) has a plan for the renovation or purchase, which describes the parameters and
9.32budget for the project.
9.33(d) A charter school may organize an affiliated nonprofit building corporation to
9.34expand an existing school facility or construct a new school facility if the charter school:
9.35(1) demonstrates the lack of facilities available to serve as a school;
9.36(2) has been operating for at least eight consecutive school years;
10.1(3) has had a net positive unreserved general fund balance as of June 30 in the
10.2preceding five fiscal years;
10.3(4) completes a feasibility study of facility options;
10.4(5) has a long-range strategic and financial plan that includes enrollment projections
10.5and demonstrates the need for constructing a new school facility; and
10.6(6) has a plan for the expansion or new school facility, which describes the
10.7parameters and budget for the project.
10.8(d) Upon the incorporation of an affiliated nonprofit building corporation under
10.9this subdivision, the authorizer of the school has the responsibility to monitor that the
10.10school's board of directors is ensuring that the affiliated nonprofit building corporation
10.11is complying with all legal requirements of the affiliated nonprofit building corporation.
10.12Failure of the school's board of directors to ensure that the affiliated nonprofit building
10.13corporation is in compliance shall be considered a violation of the school board of
10.14director's responsibilities and be a factor in the evaluation of the school by the authorizer.
10.15 Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 17b,
10.16is amended to read:
10.17 Subd. 17b. Positive review and comment. A charter school or an affiliated
10.18nonprofit building corporation organized by a charter school must not initiate an
10.19installment contract for purchase, or a lease agreement, or solicit bids for new construction,
10.20expansion, or remodeling of an educational facility that requires an expenditure in
10.21excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and
10.22paragraph (c) or (d), as applicable, and receives a positive review and comment from the
10.23commissioner under section
123B.71. A charter school or its affiliated nonprofit building
10.24corporation may not finalize any purchase agreement or construction contract that requires
10.25an expenditure in excess of the amount specified in section 123B.71 prior to receiving a
10.26positive review and comment of the commissioner. A purchase agreement or construction
10.27contract finalized before a positive review and comment is null and void.
1.3Minnesota Statutes 2013 Supplement, section 124D.10, subdivisions 4, 6a, 8,
1.49, 17a, 17b.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4,
1.7is amended to read:
1.8 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
1.9a school developer, may charter a licensed teacher under section
1.101
1.12authorizer's affidavit under paragraph (b). The school must be organized and operated as a
1.13nonprofit corporation under chapter 317A and the provisions under the applicable chapter
1.14shall apply to the school except as provided in this section.
1.15 Notwithstanding sections
1.16section and section
1.17charter school.
1.18 (b) Before the operators may establish and operate a school, the authorizer must file
1.19an affidavit with the commissioner stating its intent to charter a school. An authorizer
1.20must file a separate affidavit for each school it intends to charter. The affidavit must state
1.21the terms and conditions under which the authorizer would charter a school and how the
1.22authorizer intends to oversee the fiscal and student performance of the charter school and to
1.23comply with the terms of the written contract between the authorizer and the charter school
1.24board of directors under subdivision 6. The commissioner must approve or disapprove the
2.1authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
2.2disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies in
2.3the affidavit and the authorizer then has 20 business days to address the deficiencies. Upon
2.4receipt of the authorizer's response to the deficiencies in the affidavit, the commissioner
2.5must notify the authorizer of the final approval or disapproval within 15 business days.
2.6If the authorizer does not address deficiencies to the commissioner's satisfaction, the
2.7commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
2.8authorizer from chartering the school that is the subject of this affidavit.
2.9 (c) The authorizer may prevent an approved charter school from opening for
2.10operation if, among other grounds, the charter school violates this section or does not meet
2.11the ready-to-open standards that are part of the authorizer's oversight and evaluation
2.12process or are stipulated in the charter school contract.
2.13 (d) The operators authorized to organize and operate a school, before entering into
2.14a contract or other agreement for professional or other services, goods, or facilities,
2.15must incorporate as a nonprofit corporation under chapter 317A and must establish a
2.16board of directors composed of at least five members who are not related parties until a
2.17timely election for members of the ongoing charter school board of directors is held
2.18according to the school's articles and bylaws under paragraph (f). A charter school board
2.19of directors must be composed of at least five members who are not related parties.
2.20Staff members employed at the school, including teachers providing instruction under a
2.21contract with a cooperative, members of the board of directors, and all parents or legal
2.22guardians of children enrolled in the school are the voters eligible to elect the members
2.23of the school's board of directors. A charter school must notify eligible voters of the
2.24school board election dates at least 30 days before the election. Board of director meetings
2.25must comply with chapter 13D.
2.26 (e) A charter school shall publish and maintain on the school's official Web site: (1)
2.27the minutes of meetings of the board of directors, and of members and committees having
2.28any board-delegated authority, for at least one calendar year from the date of publication;
2.29(2) directory information for members of the board of directors and committees having
2.30board-delegated authority; and (3) identifying and contact information for the school's
2.31authorizer. Identifying and contact information for the school's authorizer must be
2.32included in other school materials made available to the public. Upon request of an
2.33individual, the charter school must also make available in a timely fashion financial
2.34statements showing all operations and transactions affecting income, surplus, and deficit
2.35during the school's last annual accounting period; and a balance sheet summarizing assets
2.36and liabilities on the closing date of the accounting period. A charter school also must
3.1include that same information about its authorizer in other school materials that it makes
3.2available to the public.
3.3 (f) Every charter school board member shall attend annual training throughout the
3.4member's term on the board. All new board members shall attend initial training on
3.5the board's role and responsibilities, employment policies and practices, and financial
3.6management. A new board member who does not begin the required initial training within
3.7six months after being seated and complete that training within 12 months of being seated
3.8on the board is automatically ineligible to continue to serve as a board member. The
3.9school shall include in its annual report the training attended by each board member
3.10during the previous year.
3.11 (g) The ongoing board must be elected before the school completes its third year of
3.12operation. Board elections must be held during the school year but may not be conducted
3.13on days when the school is closed for holidays, breaks, or vacations. The charter school
3.14board of directors shall be composed of at least five nonrelated members and include: (i)
3.15at least one licensed teacher employed as a teacher at the school or providing instruction
3.16under contract between the charter school and a cooperative; (ii) at least one parent or
3.17legal guardian of a student enrolled in the charter school who is not an employee of
3.18the charter school; and (iii) at least one interested community member who resides in
3.19Minnesota and is not employed by the charter school and does not have a child enrolled
3.20in the school. The board may include a majority of teachers described in this paragraph
3.21or parents or community members, or it may have no clear majority. The chief financial
3.22officer and the chief administrator may only serve as ex-officio nonvoting board members.
3.23No charter school employees shall serve on the board other than teachers under item (i).
3.24Contractors providing facilities, goods, or services to a charter school shall not serve on
3.25the board of directors of the charter school. Board bylaws shall outline the process and
3.26procedures for changing the board's governance structure, consistent with chapter 317A.
3.27A board may change its governance structure only:
3.28 (1) by a majority vote of the board of directors and a majority vote of the licensed
3.29teachers employed by the school as teachers, including licensed teachers providing
3.30instruction under a contract between the school and a cooperative; and
3.31 (2) with the authorizer's approval.
3.32 Any change in board governance structure must conform with the composition of
3.33the board established under this paragraph.
3.34 (h) The granting or renewal of a charter by an authorizer must not be conditioned
3.35upon the bargaining unit status of the employees of the school.
4.1 (i) The granting or renewal of a charter school by an authorizer must not be
4.2contingent on the charter school being required to contract, lease, or purchase services
4.3from the authorizer. Any potential contract, lease, or purchase of service from an
4.4authorizer must be disclosed to the commissioner, accepted through an open bidding
4.5process, and be a separate contract from the charter contract. The school must document
4.6the open bidding process. An authorizer must not enter into a contract to provide
4.7management and financial services for a school that it authorizes, unless the school
4.8documents that it received at least two competitive bids.
4.9
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4.22(j) A charter school may apply to the authorizer to amend the school charter to
4.23expand the operation of the school to additional grades beyond those defined in the original
4.24charter as approved by the commissioner. Upon approval of the school's application, the
4.25authorizer shall submit a supplementary affidavit in the form and manner prescribed
4.26by the commissioner. The supplementary affidavit must document that the school has
4.27demonstrated to the satisfaction of the authorizer the following:
4.28(1) the need for the expansion with supporting long-range enrollment projections;
4.29(2) a record of demonstrated longitudinal student academic performance and growth
4.30on statewide assessments under chapter 120B or on other academic assessments that
4.31measure longitudinal student performance and growth approved by the charter school's
4.32board of directors and agreed upon with the authorizer;
4.33(3) a sound history of school finances and a finance plan to implement the expansion
4.34that will not imperil the school's sustainability; and
4.35(4) a plan for the administrative and management capacity to implement the
4.36expansion.
5.1 (k) The commissioner shall have 30 business days to review and comment on the
5.2supplemental affidavit. The commissioner shall notify the authorizer in writing of any
5.3deficiencies in the supplemental affidavit and the authorizer then has 20 business days
5.4to address, to the commissioner's satisfaction, any deficiencies in the supplemental
5.5affidavit. Upon receipt of the authorizer's response to the deficiencies in the affidavit, the
5.6commissioner must notify the authorizer of the final approval or disapproval with 15
5.7business days. The school may not expand grades or add sites until the commissioner has
5.8approved the supplemental affidavit. The commissioner's approval or disapproval of
5.9a supplemental affidavit is final.
5.10 Sec. 2. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 6a, is
5.11amended to read:
5.12 Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
5.13commissioner and its authorizer by December 31 each year.
5.14 (b) The charter school, with the assistance of the auditor conducting the audit,
5.15must include with the report, as supplemental information, a copy of
5.16
5.17
5.18management organization, or an educational management organization. The agreements
5.19must detail the terms of the agreement, including the services provided and the annual
5.20costs for those services. If the entity that provides the professional services to the charter
5.21school is exempt from taxation under section 501 of the Internal Revenue Code of 1986,
5.22that entity must file with the commissioner by February 15 a copy of the annual return
5.23required under section 6033 of the Internal Revenue Code of 1986.
5.24 (c) A charter school independent audit report shall include audited financial data of
5.25an affiliated building corporation or other component unit.
5.26 (d) If the audit report finds that a material weakness exists in the financial reporting
5.27systems of a charter school, the charter school must submit a written report to the
5.28commissioner explaining how the material weakness will be resolved. An auditor, as a
5.29condition of providing financial services to a charter school, must agree to make available
5.30information about a charter school's financial audit to the commissioner and authorizer
5.31upon request.
5.32 Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
5.33amended to read:
6.1 Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
6.2federal, state, and local health and safety requirements applicable to school districts.
6.3 (b) A school must comply with statewide accountability requirements governing
6.4standards and assessments in chapter 120B.
6.5 (c) A school authorized by a school board may be located in any district, unless the
6.6school board of the district of the proposed location disapproves by written resolution.
6.7 (d) A charter school must be nonsectarian in its programs, admission policies,
6.8employment practices, and all other operations. An authorizer may not authorize a charter
6.9school or program that is affiliated with a nonpublic sectarian school or a religious
6.10institution. A charter school student must be released for religious instruction, consistent
6.11with section
6.12 (e) Charter schools must not be used as a method of providing education or
6.13generating revenue for students who are being home-schooled. This paragraph does not
6.14apply to shared time aid under section
6.15 (f) The primary focus of a charter school must be to provide a comprehensive
6.16program of instruction for at least one grade or age group from
6.17 through 18 years of age. Once a student is enrolled in the school, the student is considered
6.18enrolled in the school until the student formally withdraws or enrollment is revoked under
6.19the Pupil Fair Dismissal Act in sections 121A.40 to 121A.56. Instruction may be provided
6.20to people
6.21 (g) A charter school may not charge tuition.
6.22 (h) A charter school is subject to and must comply with chapter 363A and section
6.24 (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
6.25Act, sections
6.27 (j) A charter school is subject to the same financial audits, audit procedures, and
6.28audit requirements as a district, except as required under subdivision 6a. Audits must be
6.29conducted in compliance with generally accepted governmental auditing standards, the
6.30federal Single Audit Act, if applicable, and section
6.31to and must comply with sections
6.33the requirements of sections
6.34necessary because of the program at the school. Deviations must be approved by the
6.35commissioner and authorizer. The Department of Education, state auditor, legislative
6.36auditor, or authorizer may conduct financial, program, or compliance audits. A charter
7.1school determined to be in statutory operating debt under sections
7.3 (k) A charter school is a district for the purposes of tort liability under chapter 466.
7.4 (l) A charter school must comply with chapters 13 and 13D; and sections
7.5subdivision 7
7.6 (m) A charter school is subject to the Pledge of Allegiance requirement under
7.7section
7.8 (n) A charter school offering online courses or programs must comply with section
7.10 (o) A charter school and charter school board of directors are subject to chapter 181.
7.11 (p) A charter school must comply with section
7.12the transfer of students' educational records and sections
7.13the management of local records.
7.14 (q) A charter school that provides early childhood health and developmental
7.15screening must comply with sections
7.16 (r) A charter school that provides school-sponsored youth athletic activities must
7.17comply with section 121A.38.
7.18 (s) A charter school is subject to and must comply with continuing truant notification
7.19under section
7.20(t) A charter school must develop and implement a teacher evaluation and peer review
7.21process under section
7.22(u) A charter school must adopt a policy, plan, budget, and process, consistent with
7.23section
7.24for the world's best workforce.
7.25 Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 9, is
7.26amended to read:
7.27 Subd. 9. Admission requirements. (a) A charter school may limit admission to:
7.28 (1) pupils within an age group or grade level;
7.29 (2) pupils who are eligible to participate in the graduation incentives program under
7.30section
7.31 (3) residents of a specific geographic area in which the school is located when the
7.32majority of students served by the school are members of underserved populations.
7.33 (b) A charter school shall enroll an eligible pupil who submits a timely application,
7.34unless the number of applications exceeds the capacity of a program, class, grade level, or
7.35building. In this case, pupils must be accepted by lot. The charter school must develop
8.1and publish, including on its Web site, a lottery policy and process that it must use when
8.2accepting pupils by lot.
8.3 (c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
8.4and to a foster child of that pupil's parents and may give preference for enrolling children
8.5of the school's staff before accepting other pupils by lot. A charter school shall give
8.6enrollment preference to an enrolled prekindergarten student who enrolls in kindergarten
8.7if the prekindergarten student is a sibling of an enrolled pupil and to a foster child of that
8.8pupil's parents and may also give preference for enrolling children of the school's staff
8.9before accepting other pupils by lot.
8.10 (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
8.11unless the pupil is at least five years of age on September 1 of the calendar year in which
8.12the school year for which the pupil seeks admission commences; or (2) as a first grade
8.13student, unless the pupil is at least six years of age on September 1 of the calendar year in
8.14which the school year for which the pupil seeks admission commences or has completed
8.15kindergarten; except that a charter school may establish and publish on its Web site a
8.16policy for admission of selected pupils at an earlier age, consistent with the enrollment
8.17process in paragraphs (b) and (c).
8.18 (e) Except as permitted in paragraph (d), a charter school may not limit admission
8.19to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
8.20athletic ability and may not establish any criteria or requirements for admission that are
8.21inconsistent with this subdivision.
8.22 (f) The charter school shall not distribute any services or goods of value to students,
8.23parents, or guardians as an inducement, term, or condition of enrolling a student in a
8.24charter school.
8.25 Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 17a,
8.26is amended to read:
8.27 Subd. 17a. Affiliated nonprofit building corporation. (a)
8.28may organize an affiliated nonprofit building corporation
8.29and renovate an existing facility to serve as a school or
8.30
8.31
8.32
8.33(i) has been in operation for at least six years;
8.34(ii) has a net unreserved general fund balance as of June 30 in the preceding three
8.35years;
9.1(iii) has long-range strategic and financial plans that include enrollment projections
9.2for at least five years;
9.3(iv) completes a feasibility study of facility options that outlines the benefits and
9.4costs of the options; and
9.5(v) has a plan for the purchase, renovation, or new construction which describes
9.6the parameters and budget for the project.
9.7 (b) An affiliated nonprofit building corporation under this subdivision must:
9.8 (1) be incorporated under section 317A;
9.9 (2) comply with applicable Internal Revenue Service regulations, including
9.10regulations for "supporting organizations" as defined by the Internal Revenue Service;
9.11(3) post on the school Web site the name, mailing address, bylaws, minutes of board
9.12meetings, and the names of the current board of directors of the affiliated nonprofit
9.13building corporation;
9.14
9.15
9.16
9.17 (c) An affiliated nonprofit building corporation must not serve as the leasing agent
9.18for property or facilities it does not own. A charter school that leases a facility from an
9.19affiliated nonprofit building corporation that does not own the leased facility is ineligible
9.20to receive charter school lease aid. The state is immune from liability resulting from a
9.21contract between a charter school and an affiliated nonprofit building corporation.
9.22
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10.7
10.8(d) Upon the incorporation of an affiliated nonprofit building corporation under
10.9this subdivision, the authorizer of the school has the responsibility to monitor that the
10.10school's board of directors is ensuring that the affiliated nonprofit building corporation
10.11is complying with all legal requirements of the affiliated nonprofit building corporation.
10.12Failure of the school's board of directors to ensure that the affiliated nonprofit building
10.13corporation is in compliance shall be considered a violation of the school board of
10.14director's responsibilities and be a factor in the evaluation of the school by the authorizer.
10.15 Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 17b,
10.16is amended to read:
10.17 Subd. 17b. Positive review and comment.
10.18
10.19
10.20
10.21
10.22
10.23
10.24corporation may not finalize any purchase agreement or construction contract that requires
10.25an expenditure in excess of the amount specified in section 123B.71 prior to receiving a
10.26positive review and comment of the commissioner. A purchase agreement or construction
10.27contract finalized before a positive review and comment is null and void.
