Bill Text: MN SF1517 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Charter schools boards of directors, conflict of interest, personnel, and contract changes modifications
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-02 - Referred to Education [SF1517 Detail]
Download: Minnesota-2013-SF1517-Introduced.html
1.2relating to education; modifying charter school provisions; amending Minnesota
1.3Statutes 2012, section 124D.10, subdivisions 4, 4a, 11, 23.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 4, is amended to read:
1.6 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
1.7a school developer, may charter a licensed teacher under section122A.18, subdivision
1.81 , or a group of individuals that includes one or more licensed teachers under section
1.9122A.18, subdivision 1
, to operate a school subject to the commissioner's approval of the
1.10authorizer's affidavit under paragraph (b). The school must be organized and operated as a
1.11nonprofit corporation under chapter 317A and the provisions under the applicable chapter
1.12shall apply to the school except as provided in this section.
1.13 Notwithstanding sections465.717 and
465.719 , a school district, subject to this
1.14section and section124D.11 , may create a corporation for the purpose of establishing a
1.15charter school.
1.16 (b) Before the operators may establish and operate a school, the authorizer must file
1.17an affidavit with the commissioner stating its intent to charter a school. An authorizer
1.18must file a separate affidavit for each school it intends to charter. The affidavit must state
1.19the terms and conditions under which the authorizer would charter a school and how the
1.20authorizer intends to oversee the fiscal and student performance of the charter school and to
1.21comply with the terms of the written contract between the authorizer and the charter school
1.22board of directors under subdivision 6. The commissioner must approve or disapprove the
1.23authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
1.24disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies
2.1in the affidavit and the authorizer then has 20 business days to address the deficiencies.
2.2If the authorizer does not address deficiencies to the commissioner's satisfaction, the
2.3commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
2.4authorizer from chartering the school that is the subject of this affidavit.
2.5 (c) The authorizer may prevent an approved charter school from opening for
2.6operation if, among other grounds, the charter school violates this section or does not meet
2.7the ready-to-open standards that are part of the authorizer's oversight and evaluation
2.8process or are stipulated in the charter school contract.
2.9 (d) The operators authorized to organize and operate a school, before entering into a
2.10contract or other agreement for professional or other services, goods, or facilities, must
2.11incorporate as a nonprofit corporation under chapter 317A and must establish a board of
2.12directors composed of at least five members who are not related parties until a timely
2.13election for members of the ongoing charter school board of directors is held according to
2.14the school's articles and bylaws under paragraph (f). A charter school board of directors
2.15must be composed of at least five members who are not related parties. Staff members
2.16employed at the school, including teachers providing instruction under a contract with a
2.17cooperative, members of the board of directors, and all parents or legal guardians of
2.18children enrolled in the school are the voters eligible to elect the members of the school's
2.19board of directors. A charter school must notify eligible voters of the school board election
2.20dates at least 30 days before the election. Board of director meetings and board committee
2.21meetings must comply with chapter 13D.
2.22 (e) A charter school shall publish and maintain on the school's official Web site: (1)
2.23the minutes of meetings of the board of directors, and of members and committees having
2.24any board-delegated authority, for at least one calendar year from the date of publication;
2.25(2) directory information for members of the board of directors and committees having
2.26board-delegated authority; and (3) identifying and contact information for the school's
2.27authorizer. Identifying and contact information for the school's authorizer must be
2.28included in other school materials made available to the public. Upon request of an
2.29individual, the charter school must also make available in a timely fashion financial
2.30statements showing all operations and transactions affecting income, surplus, and deficit
2.31during the school's last annual accounting period; and a balance sheet summarizing assets
2.32and liabilities on the closing date of the accounting period. A charter school also must post
2.33on its official Web site information identifying its authorizer and indicate how to contact
2.34that authorizer and include that same information about its authorizer in other school
2.35materials that it makes available to the public.
3.1 (f) Every charter school board member shall attendongoing annual training
3.2throughout the member's term on the boardgovernance, including. All new board
3.3members shall attend initial training on the board's role and responsibilities, employment
3.4policies and practices, and financial management. A new board member who does not
3.5begin the required initial training within six months after being seated and complete that
3.6training within 12 months of being seated on the board is automatically ineligible to
3.7continue to serve as a board member. The school shall include in its annual report the
3.8training attended by each board member during the previous year.
3.9 (g) The ongoing board must be elected before the school completes its third year of
3.10operation. Board elections must be held during the school year but may not be conducted
3.11on days when the school is closed for holidays or vacations. The charter school board of
3.12directors shall be composed of at least five nonrelated members and include: (i) at least
3.13one licensed teacher employed as a teacher at the school or a licensed teacher providing
3.14instruction under contract between the charter school and a cooperative; (ii)the at least one
3.15 parent or legal guardian of a student enrolled in the charter school who is not an employee
3.16of the charter school; and (iii)an at least one interested community member who resides
3.17in Minnesota and is not employed by the charter school and does not have a child enrolled
3.18in the school. The board maybe a teacher majority board composed of include a majority
3.19of teachers, parents, or community members as described in this paragraph or it may have
3.20no clear majority. The chief financial officer and the chief administrator may only serve
3.21as ex-officio nonvoting board members and may not serve as a voting member of the
3.22board. No charter school employees shallnot serve on the board unless other than teachers
3.23under item (i)applies. Contractors providing facilities, goods, or services to a charter
3.24school shall not serve on the board of directors of the charter school. Board bylaws shall
3.25outline the process and procedures for changing the board's governancemodel structure,
3.26consistent with chapter 317A. A board may change its governancemodel structure only:
3.27 (1) by a majority vote of the board of directors and a majority vote of the licensed
3.28teachers employed by the school as teachers, including licensed teachers providing
3.29instruction under a contract between the school and a cooperative; and
3.30 (2) with the authorizer's approval.
3.31 Any change in board governance structure must conform with theboard structure
3.32 composition of the board established under this paragraph.
3.33 (h) The granting or renewal of a charter by an authorizer must not be conditioned
3.34upon the bargaining unit status of the employees of the school.
3.35 (i) The granting or renewal of a charter school by an authorizer must not be
3.36contingent on the charter school being required to contract, lease, or purchase services
4.1or facilities from the authorizer or to enter into a contract with a corporation, contractor,
4.2or individual with which the authorizer has a financial relationship or arrangement. Any
4.3potential contract, lease, or purchase of service from an authorizer must be disclosed to
4.4the commissioner, accepted through an open bidding process, and be a separate contract
4.5from the charter contract. The school must document the open bidding process it used in
4.6awarding the contract. The authorizer must document that the bid terms were competitive
4.7in relation to the market and that the authorizer makes the same terms available to
4.8schools that it does not authorize. An authorizer must not enter into a contract to provide
4.9management and financial services for a school that it authorizes, unless the school
4.10documents that it received at least two competitive bids.
4.11 (j) An authorizer may permit the board of directors of a charter school to expand
4.12the operation of the charter school to additional sites or to add additional grades at the
4.13school beyond those described in the authorizer's original affidavit as approved by
4.14the commissioner only after submitting a supplemental affidavit for approval to the
4.15commissioner in a form and manner prescribed by the commissioner. The supplemental
4.16affidavit must document that:
4.17 (1) the proposed expansion plan demonstrates need and projected enrollment;
4.18 (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
4.19students' improved academic performance and growth on statewide assessments under
4.20chapter 120B;
4.21 (3) the charter school is financially sound and the financing it needs to implement
4.22the proposed expansion exists; and
4.23 (4) the charter school has the governance structure and management capacity to
4.24carry out its expansion.
4.25 (k) The commissioner shall have 30 business days to review and comment on the
4.26supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
4.27the supplemental affidavit and the authorizer then has 20 business days to address, to the
4.28commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
4.29may not expand grades or add sites until the commissioner has approved the supplemental
4.30affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
4.31 Sec. 2. Minnesota Statutes 2012, section 124D.10, subdivision 4a, is amended to read:
4.32 Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
4.33member of the charter school board of directors if the individual, an immediate family
4.34member, or the individual's partner isan a full or part owner, employee or agent of, or
4.35a contractor principal with a for-profit or nonprofit entity or individual independent
5.1contractor with whom the charter school contracts, directly or indirectly, for professional
5.2services, goods, or facilities. An individual is prohibited from serving as a board member
5.3if an immediate family member is an employee of the school or is an individual with
5.4whom the school contracts, directly or indirectly, through full or part ownership, for
5.5professional services, goods, or facilities. A violation of this prohibition renders a contract
5.6voidable at the option of the commissioner or the charter school board of directors. A
5.7member of a charter school board of directors who violates this prohibition is individually
5.8liable to the charter school for any damage caused by the violation.
5.9 (b) No member of the board of directors, employee, officer, or agent of a charter
5.10school shall participate in selecting, awarding, or administering a contract if a conflict
5.11of interest exists. A conflict exists when:
5.12 (1) the board member, employee, officer, or agent;
5.13 (2) the immediate family of the board member, employee, officer, or agent;
5.14 (3) the partner of the board member, employee, officer, or agent; or
5.15 (4) an organization that employs, or is about to employ any individual in clauses
5.16(1) to (3),
5.17has a financial or other interest in the entity with which the charter school is contracting.
5.18A violation of this prohibition renders the contract void.
5.19 (c) Any employee, agent, or board member of the authorizer who participates
5.20in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
5.21nonrenewal process or decision is ineligible to serve on the board of directors of a school
5.22chartered by that authorizer.
5.23 (d) An individual may serve as a member of the board of directors if no conflict of
5.24interest under paragraph (a) exists.
5.25 (e) The conflict of interest provisions under this subdivision do not apply to
5.26compensation paid to a teacher employed by the charter school who also serves as a
5.27member of the board of directors.
5.28 (f) The conflict of interest provisions under this subdivision do not apply to a teacher
5.29who provides services to a charter school through a cooperative formed under chapter
5.30308A when the teacher also serves on the charter school board of directors.
5.31 Sec. 3. Minnesota Statutes 2012, section 124D.10, subdivision 11, is amended to read:
5.32 Subd. 11. Employment and other operating matters. (a) A charter school must
5.33employ or contract with necessary teachers, as defined by section122A.15, subdivision 1 ,
5.34who hold valid licenses to perform the particular service for which they are employed in
5.35the school. The charter school's state aid may be reduced under section127A.43 if the
6.1school employs a teacher who is not appropriately licensed or approved by the board of
6.2teaching. The school may employ necessary employees who are not required to hold
6.3teaching licenses to perform duties other than teaching and may contract for other services.
6.4The school may discharge teachers and nonlicensed employees. The charter school board
6.5is subject to section181.932 . When offering employment to a prospective employee, a
6.6charter school must give that employee a written description of the terms and conditions
6.7of employment and the school's personnel policies.
6.8 (b) A person, without holding a valid administrator's license, may perform
6.9administrative, supervisory, or instructional leadership duties. The board of directors shall
6.10establish qualifications for persons that hold administrative, supervisory, or instructional
6.11leadership roles. The qualifications shall include at least the following areas: instruction
6.12and assessment; human resource and personnel management; financial management;
6.13legal and compliance management; effective communication; and board, authorizer, and
6.14community relationships. The board of directors shall use those qualifications as the basis
6.15for job descriptions, hiring, and performance evaluations of those who hold administrative,
6.16supervisory, or instructional leadership roles. The board of directors and an individual
6.17who does not hold a valid administrative license and who serves in an administrative,
6.18supervisory, or instructional leadership position shall develop a professional development
6.19plan. Documentation of the implementation of the professional development plan of these
6.20persons shall be included in the school's annual report.
6.21 (c) The board of directors also shall decide policy matters related to the operation
6.22of the school, including budgeting, curriculum, programming, personnel, and operating
6.23procedures. The board shall adopt a policy on nepotism in employment. The board shall
6.24adopt personnel evaluation policies and practices that, at a minimum:
6.25(1) carry out the school's mission and goals;
6.26(2) evaluate the execution of charter contract goals and commitments;
6.27(3) evaluate student achievement, postsecondary and workforce readiness, and
6.28engagement goals; and
6.29(4) provide professional development related to the individual's job responsibilities.
6.30 Sec. 4. Minnesota Statutes 2012, section 124D.10, subdivision 23, is amended to read:
6.31 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
6.32The duration of the contract with an authorizer must be for the term contained in the
6.33contract according to subdivision 6. The authorizer may or may not renew a contract at
6.34the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
6.35terminate a contract during the term of the contract for any ground listed in paragraph (b).
7.1At least 60 business days before not renewing or terminating a contract, the authorizer
7.2shall notify the board of directors of the charter school of the proposed action in writing.
7.3The notice shall state the grounds for the proposed action in reasonable detail and that the
7.4charter school's board of directors may request in writing an informal hearing before the
7.5authorizer within 15 business days of receiving notice of nonrenewal or termination of
7.6the contract. Failure by the board of directors to make a written request for an informal
7.7hearing within the 15-business-day period shall be treated as acquiescence to the proposed
7.8action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
7.9business days' notice to the charter school's board of directors of the hearing date. The
7.10authorizer shall conduct an informal hearing before taking final action. The authorizer
7.11shall take final action to renew or not renew a contract no later than 20 business days
7.12before the proposed date for terminating the contract or the end date of the contract.
7.13 (b) A contract may be terminated or not renewed upon any of the following grounds:
7.14 (1) failure to meet the requirements for pupil performance contained in the contract;
7.15 (2) failure to meet generally accepted standards of fiscal management;
7.16 (3) violations of law; or
7.17 (4) other good cause shown.
7.18 If a contract is terminated or not renewed under this paragraph, the school must be
7.19dissolved according to the applicable provisions of chapter 317A.
7.20(c) If the authorizer and the charter school board of directors mutually agree to
7.21terminate or not renew the contract, a change in authorizers is allowed if the commissioner
7.22approves the change to a different eligible authorizer to authorize the charter school.
7.23Both parties must jointly submit their intent in writing to the commissioner to mutually
7.24terminate the contract. The authorizer that is a party to the existing contract must inform
7.25the proposed authorizer about the fiscal and operational status and student performance
7.26of the school. Before the commissioner determines whether to approve a change in
7.27authorizer, the proposed authorizer must identify any outstanding issues in the proposed
7.28charter contract that were unresolved in the previous charter contract and have the charter
7.29school agree to resolve those issues. If no change in authorizer is approved, the school
7.30must be dissolved according to applicable law and the terms of the contract.
7.31 (c) If the authorizer and the charter school board of directors mutually agree not to
7.32renew the contract, a change in authorizers is allowed. The authorizer and the school
7.33board must jointly submit a written and signed letter of their intent to the commissioner
7.34to mutually not renew the contract. The authorizer that is a party to the existing contract
7.35must inform the proposed authorizer about the fiscal, operational, and student performance
7.36status of the school, as well as any outstanding contractual obligations that exist. The
8.1charter contract between the proposed authorizer and the school must identify and provide
8.2a plan to address any outstanding obligations from the previous contract. The proposed
8.3contract must be submitted at least 90 business days before the end of the existing
8.4charter contract. The commissioner shall have 15 business days to review and make a
8.5determination. The proposed authorizer and the school shall have 15 business days to
8.6respond to the determination and address any issues identified by the commissioner. A
8.7final determination by the commissioner shall be made no later than 45 business days
8.8before the end of the current charter contract. If no change in authorizer is approved, the
8.9school and the current authorizer may withdraw their letter of nonrenewal and enter into a
8.10new contract. If the transfer of authorizers is not approved and the current authorizer and
8.11the school do not withdraw their letter and enter into a new contract, the school must be
8.12dissolved according to applicable law and the terms of the contract.
8.13 (d) The commissioner, after providing reasonable notice to the board of directors of
8.14a charter school and the existing authorizer, and after providing an opportunity for a public
8.15hearing, may terminate the existing contract between the authorizer and the charter school
8.16board if the charter school has a history of:
8.17 (1) failure to meet pupil performance requirements consistent with state law;
8.18 (2) financial mismanagement or failure to meet generally accepted standards of
8.19fiscal management; or
8.20 (3) repeated or major violations of the law.
1.3Statutes 2012, section 124D.10, subdivisions 4, 4a, 11, 23.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 4, is amended to read:
1.6 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
1.7a school developer, may charter a licensed teacher under section
1.81
1.10authorizer's affidavit under paragraph (b). The school must be organized and operated as a
1.11nonprofit corporation under chapter 317A and the provisions under the applicable chapter
1.12shall apply to the school except as provided in this section.
1.13 Notwithstanding sections
1.14section and section
1.15charter school.
1.16 (b) Before the operators may establish and operate a school, the authorizer must file
1.17an affidavit with the commissioner stating its intent to charter a school. An authorizer
1.18must file a separate affidavit for each school it intends to charter. The affidavit must state
1.19the terms and conditions under which the authorizer would charter a school and how the
1.20authorizer intends to oversee the fiscal and student performance of the charter school and to
1.21comply with the terms of the written contract between the authorizer and the charter school
1.22board of directors under subdivision 6. The commissioner must approve or disapprove the
1.23authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
1.24disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies
2.1in the affidavit and the authorizer then has 20 business days to address the deficiencies.
2.2If the authorizer does not address deficiencies to the commissioner's satisfaction, the
2.3commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
2.4authorizer from chartering the school that is the subject of this affidavit.
2.5 (c) The authorizer may prevent an approved charter school from opening for
2.6operation if, among other grounds, the charter school violates this section or does not meet
2.7the ready-to-open standards that are part of the authorizer's oversight and evaluation
2.8process or are stipulated in the charter school contract.
2.9 (d) The operators authorized to organize and operate a school, before entering into a
2.10contract or other agreement for professional or other services, goods, or facilities, must
2.11incorporate as a nonprofit corporation under chapter 317A and must establish a board of
2.12directors composed of at least five members who are not related parties until a timely
2.13election for members of the ongoing charter school board of directors is held according to
2.14the school's articles and bylaws under paragraph (f). A charter school board of directors
2.15must be composed of at least five members who are not related parties. Staff members
2.16employed at the school, including teachers providing instruction under a contract with a
2.17cooperative, members of the board of directors, and all parents or legal guardians of
2.18children enrolled in the school are the voters eligible to elect the members of the school's
2.19board of directors. A charter school must notify eligible voters of the school board election
2.20dates at least 30 days before the election. Board of director meetings and board committee
2.21meetings must comply with chapter 13D.
2.22 (e) A charter school shall publish and maintain on the school's official Web site: (1)
2.23the minutes of meetings of the board of directors, and of members and committees having
2.24any board-delegated authority, for at least one calendar year from the date of publication;
2.25(2) directory information for members of the board of directors and committees having
2.26board-delegated authority; and (3) identifying and contact information for the school's
2.27authorizer. Identifying and contact information for the school's authorizer must be
2.28included in other school materials made available to the public. Upon request of an
2.29individual, the charter school must also make available in a timely fashion financial
2.30statements showing all operations and transactions affecting income, surplus, and deficit
2.31during the school's last annual accounting period; and a balance sheet summarizing assets
2.32and liabilities on the closing date of the accounting period. A charter school also must post
2.33on its official Web site information identifying its authorizer and indicate how to contact
2.34that authorizer and include that same information about its authorizer in other school
2.35materials that it makes available to the public.
3.1 (f) Every charter school board member shall attend
3.2throughout the member's term on the board
3.3members shall attend initial training on the board's role and responsibilities, employment
3.4policies and practices, and financial management. A new board member who does not
3.5begin the required initial training within six months after being seated and complete that
3.6training within 12 months of being seated on the board is automatically ineligible to
3.7continue to serve as a board member. The school shall include in its annual report the
3.8training attended by each board member during the previous year.
3.9 (g) The ongoing board must be elected before the school completes its third year of
3.10operation. Board elections must be held during the school year but may not be conducted
3.11on days when the school is closed for holidays or vacations. The charter school board of
3.12directors shall be composed of at least five nonrelated members and include: (i) at least
3.13one licensed teacher employed as a teacher at the school or a licensed teacher providing
3.14instruction under contract between the charter school and a cooperative; (ii)
3.15 parent or legal guardian of a student enrolled in the charter school who is not an employee
3.16of the charter school; and (iii)
3.17in Minnesota and is not employed by the charter school and does not have a child enrolled
3.18in the school. The board may
3.19of teachers, parents, or community members as described in this paragraph or it may have
3.20no clear majority. The chief financial officer and the chief administrator may only serve
3.21as ex-officio nonvoting board members and may not serve as a voting member of the
3.22board. No charter school employees shall
3.23under item (i)
3.24school shall not serve on the board of directors of the charter school. Board bylaws shall
3.25outline the process and procedures for changing the board's governance
3.26consistent with chapter 317A. A board may change its governance
3.27 (1) by a majority vote of the board of directors and a majority vote of the licensed
3.28teachers employed by the school as teachers, including licensed teachers providing
3.29instruction under a contract between the school and a cooperative; and
3.30 (2) with the authorizer's approval.
3.31 Any change in board governance structure must conform with the
3.32 composition of the board established under this paragraph.
3.33 (h) The granting or renewal of a charter by an authorizer must not be conditioned
3.34upon the bargaining unit status of the employees of the school.
3.35 (i) The granting or renewal of a charter school by an authorizer must not be
3.36contingent on the charter school being required to contract, lease, or purchase services
4.1or facilities from the authorizer or to enter into a contract with a corporation, contractor,
4.2or individual with which the authorizer has a financial relationship or arrangement. Any
4.3potential contract, lease, or purchase of service from an authorizer must be disclosed to
4.4the commissioner, accepted through an open bidding process, and be a separate contract
4.5from the charter contract. The school must document the open bidding process it used in
4.6awarding the contract. The authorizer must document that the bid terms were competitive
4.7in relation to the market and that the authorizer makes the same terms available to
4.8schools that it does not authorize. An authorizer must not enter into a contract to provide
4.9management and financial services for a school that it authorizes, unless the school
4.10documents that it received at least two competitive bids.
4.11 (j) An authorizer may permit the board of directors of a charter school to expand
4.12the operation of the charter school to additional sites or to add additional grades at the
4.13school beyond those described in the authorizer's original affidavit as approved by
4.14the commissioner only after submitting a supplemental affidavit for approval to the
4.15commissioner in a form and manner prescribed by the commissioner. The supplemental
4.16affidavit must document that:
4.17 (1) the proposed expansion plan demonstrates need and projected enrollment;
4.18 (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
4.19students' improved academic performance and growth on statewide assessments under
4.20chapter 120B;
4.21 (3) the charter school is financially sound and the financing it needs to implement
4.22the proposed expansion exists; and
4.23 (4) the charter school has the governance structure and management capacity to
4.24carry out its expansion.
4.25 (k) The commissioner shall have 30 business days to review and comment on the
4.26supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
4.27the supplemental affidavit and the authorizer then has 20 business days to address, to the
4.28commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
4.29may not expand grades or add sites until the commissioner has approved the supplemental
4.30affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
4.31 Sec. 2. Minnesota Statutes 2012, section 124D.10, subdivision 4a, is amended to read:
4.32 Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
4.33member of the charter school board of directors if the individual, an immediate family
4.34member, or the individual's partner is
4.35
5.1contractor with whom the charter school contracts, directly or indirectly, for professional
5.2services, goods, or facilities. An individual is prohibited from serving as a board member
5.3if an immediate family member is an employee of the school or is an individual with
5.4whom the school contracts, directly or indirectly, through full or part ownership, for
5.5professional services, goods, or facilities. A violation of this prohibition renders a contract
5.6voidable at the option of the commissioner or the charter school board of directors. A
5.7member of a charter school board of directors who violates this prohibition is individually
5.8liable to the charter school for any damage caused by the violation.
5.9 (b) No member of the board of directors, employee, officer, or agent of a charter
5.10school shall participate in selecting, awarding, or administering a contract if a conflict
5.11of interest exists. A conflict exists when:
5.12 (1) the board member, employee, officer, or agent;
5.13 (2) the immediate family of the board member, employee, officer, or agent;
5.14 (3) the partner of the board member, employee, officer, or agent; or
5.15 (4) an organization that employs, or is about to employ any individual in clauses
5.16(1) to (3),
5.17has a financial or other interest in the entity with which the charter school is contracting.
5.18A violation of this prohibition renders the contract void.
5.19 (c) Any employee, agent, or board member of the authorizer who participates
5.20in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
5.21nonrenewal process or decision is ineligible to serve on the board of directors of a school
5.22chartered by that authorizer.
5.23 (d) An individual may serve as a member of the board of directors if no conflict of
5.24interest under paragraph (a) exists.
5.25 (e) The conflict of interest provisions under this subdivision do not apply to
5.26compensation paid to a teacher employed by the charter school who also serves as a
5.27member of the board of directors.
5.28 (f) The conflict of interest provisions under this subdivision do not apply to a teacher
5.29who provides services to a charter school through a cooperative formed under chapter
5.30308A when the teacher also serves on the charter school board of directors.
5.31 Sec. 3. Minnesota Statutes 2012, section 124D.10, subdivision 11, is amended to read:
5.32 Subd. 11. Employment and other operating matters. (a) A charter school must
5.33employ or contract with necessary teachers, as defined by section
5.34who hold valid licenses to perform the particular service for which they are employed in
5.35the school. The charter school's state aid may be reduced under section
6.1school employs a teacher who is not appropriately licensed or approved by the board of
6.2teaching. The school may employ necessary employees who are not required to hold
6.3teaching licenses to perform duties other than teaching and may contract for other services.
6.4The school may discharge teachers and nonlicensed employees. The charter school board
6.5is subject to section
6.6charter school must give that employee a written description of the terms and conditions
6.7of employment and the school's personnel policies.
6.8 (b) A person, without holding a valid administrator's license, may perform
6.9administrative, supervisory, or instructional leadership duties. The board of directors shall
6.10establish qualifications for persons that hold administrative, supervisory, or instructional
6.11leadership roles. The qualifications shall include at least the following areas: instruction
6.12and assessment; human resource and personnel management; financial management;
6.13legal and compliance management; effective communication; and board, authorizer, and
6.14community relationships. The board of directors shall use those qualifications as the basis
6.15for job descriptions, hiring, and performance evaluations of those who hold administrative,
6.16supervisory, or instructional leadership roles. The board of directors and an individual
6.17who does not hold a valid administrative license and who serves in an administrative,
6.18supervisory, or instructional leadership position shall develop a professional development
6.19plan. Documentation of the implementation of the professional development plan of these
6.20persons shall be included in the school's annual report.
6.21 (c) The board of directors also shall decide policy matters related to the operation
6.22of the school, including budgeting, curriculum, programming, personnel, and operating
6.23procedures. The board shall adopt a policy on nepotism in employment. The board shall
6.24adopt personnel evaluation policies and practices that, at a minimum:
6.25(1) carry out the school's mission and goals;
6.26(2) evaluate the execution of charter contract goals and commitments;
6.27(3) evaluate student achievement, postsecondary and workforce readiness, and
6.28engagement goals; and
6.29(4) provide professional development related to the individual's job responsibilities.
6.30 Sec. 4. Minnesota Statutes 2012, section 124D.10, subdivision 23, is amended to read:
6.31 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
6.32The duration of the contract with an authorizer must be for the term contained in the
6.33contract according to subdivision 6. The authorizer may or may not renew a contract at
6.34the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
6.35terminate a contract during the term of the contract for any ground listed in paragraph (b).
7.1At least 60 business days before not renewing or terminating a contract, the authorizer
7.2shall notify the board of directors of the charter school of the proposed action in writing.
7.3The notice shall state the grounds for the proposed action in reasonable detail and that the
7.4charter school's board of directors may request in writing an informal hearing before the
7.5authorizer within 15 business days of receiving notice of nonrenewal or termination of
7.6the contract. Failure by the board of directors to make a written request for an informal
7.7hearing within the 15-business-day period shall be treated as acquiescence to the proposed
7.8action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
7.9business days' notice to the charter school's board of directors of the hearing date. The
7.10authorizer shall conduct an informal hearing before taking final action. The authorizer
7.11shall take final action to renew or not renew a contract no later than 20 business days
7.12before the proposed date for terminating the contract or the end date of the contract.
7.13 (b) A contract may be terminated or not renewed upon any of the following grounds:
7.14 (1) failure to meet the requirements for pupil performance contained in the contract;
7.15 (2) failure to meet generally accepted standards of fiscal management;
7.16 (3) violations of law; or
7.17 (4) other good cause shown.
7.18 If a contract is terminated or not renewed under this paragraph, the school must be
7.19dissolved according to the applicable provisions of chapter 317A.
7.20
7.21
7.22
7.23
7.24
7.25
7.26
7.27
7.28
7.29
7.30
7.31 (c) If the authorizer and the charter school board of directors mutually agree not to
7.32renew the contract, a change in authorizers is allowed. The authorizer and the school
7.33board must jointly submit a written and signed letter of their intent to the commissioner
7.34to mutually not renew the contract. The authorizer that is a party to the existing contract
7.35must inform the proposed authorizer about the fiscal, operational, and student performance
7.36status of the school, as well as any outstanding contractual obligations that exist. The
8.1charter contract between the proposed authorizer and the school must identify and provide
8.2a plan to address any outstanding obligations from the previous contract. The proposed
8.3contract must be submitted at least 90 business days before the end of the existing
8.4charter contract. The commissioner shall have 15 business days to review and make a
8.5determination. The proposed authorizer and the school shall have 15 business days to
8.6respond to the determination and address any issues identified by the commissioner. A
8.7final determination by the commissioner shall be made no later than 45 business days
8.8before the end of the current charter contract. If no change in authorizer is approved, the
8.9school and the current authorizer may withdraw their letter of nonrenewal and enter into a
8.10new contract. If the transfer of authorizers is not approved and the current authorizer and
8.11the school do not withdraw their letter and enter into a new contract, the school must be
8.12dissolved according to applicable law and the terms of the contract.
8.13 (d) The commissioner, after providing reasonable notice to the board of directors of
8.14a charter school and the existing authorizer, and after providing an opportunity for a public
8.15hearing, may terminate the existing contract between the authorizer and the charter school
8.16board if the charter school has a history of:
8.17 (1) failure to meet pupil performance requirements consistent with state law;
8.18 (2) financial mismanagement or failure to meet generally accepted standards of
8.19fiscal management; or
8.20 (3) repeated or major violations of the law.
