Bill Text: MN SF2113 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Charter school authorizer provisions modifications
Sponsorship: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-03-19 - Comm report: To pass as amended and re-refer to Finance [SF2113 Detail]
Download: Minnesota-2011-SF2113-Engrossed.html
1.2relating to education; modifying certain charter school provisions;amending
1.3Minnesota Statutes 2011 Supplement, section 124D.10, subdivisions 3, 4, 6,
1.411, 15, 17a, 23, 25.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3,
1.7is amended to read:
1.8 Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
1.9subdivision have the meanings given them.
1.10 "Application" to receive approval as an authorizer means the proposal an eligible
1.11authorizer submits to the commissioner under paragraph (c) before that authorizer is able
1.12to submit any affidavit to charter to a school.
1.13 "Application" under subdivision 4 means the charter school business plan a
1.14school developer submits to an authorizer for approval to establish a charter school that
1.15documents the school developer's mission statement, school purposes, program design,
1.16financial plan, governance and management structure, and background and experience,
1.17plus any other information the authorizer requests. The application also shall include a
1.18"statement of assurances" of legal compliance prescribed by the commissioner.
1.19 "Affidavit" means a written statement the authorizer submits to the commissioner
1.20for approval to establish a charter school under subdivision 4 attesting to its review and
1.21approval process before chartering a school.
1.22 (b) The following organizations may authorize one or more charter schools:
1.23 (1) a school board; intermediate school district school board; education district
1.24organized under sections123A.15 to
123A.19 ;
2.1 (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
2.2of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
2.3natural person that directly or indirectly, through one or more intermediaries, controls,
2.4is controlled by, or is under common control with the nonpublic sectarian or religious
2.5institution, and any other charitable organization under this clause that in the federal IRS
2.6Form 1023, Part IV, describes activities indicating a religious purpose, that:
2.7 (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
2.8Foundations;
2.9 (ii) is registered with the attorney general's office; and
2.10 (iii) is incorporated in the state of Minnesota and has been operating continuously
2.11for at least five years but does not operate a charter school;
2.12 (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
2.13four-year degrees and is registered with the Minnesota Office of Higher Education under
2.14chapter 136A; community college, state university, or technical college governed by the
2.15Board of Trustees of the Minnesota State Colleges and Universities; or the University
2.16of Minnesota;
2.17 (4) a nonprofit corporation subject to chapter 317A, described in section317A.905 ,
2.18and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
2.19of 1986, may authorize one or more charter schools if the charter school has operated
2.20for at least three years under a different authorizer and if the nonprofit corporation has
2.21existed for at least 25 years; or
2.22 (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
2.23under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
2.24of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
2.25in being approved as an authorizer under this paragraph must submit a proposal to the
2.26commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
2.27Such authorizers shall consider and approve applications using the criteria provided in
2.28subdivision 4 and shall not limit the applications it solicits, considers, or approves to any
2.29single curriculum, learning program, or method.
2.30 (c) An eligible authorizer under this subdivision must apply to the commissioner for
2.31approval as an authorizer before submitting any affidavit to the commissioner to charter
2.32a school. The application for approval as a charter school authorizer must demonstrate
2.33the applicant's ability to implement the procedures and satisfy the criteria for chartering a
2.34school under this section. The commissioner must approve or disapprove an application
2.35within 45 business days of the application deadline. If the commissioner disapproves
2.36the application, the commissioner must notify the applicant of the specific deficiencies
3.1in writing and the applicant then has 20 business days to address the deficiencies to the
3.2commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
3.3business days to make a final decision to approve or disapprove the application. Failing to
3.4address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
3.5be an authorizer. The commissioner, in establishing criteria for approval, must consider
3.6the applicant's:
3.7 (1) capacity and infrastructure;
3.8 (2) application criteria and process;
3.9 (3) contracting process;
3.10 (4) ongoing oversight and evaluation processes; and
3.11 (5) renewal criteria and processes.
3.12 (d) An applicant must include in its application to the commissioner to be an
3.13approved authorizer at least the following:
3.14 (1) how chartering schools is a way for the organization to carry out its mission;
3.15 (2) a description of the capacity of the organization to serve as an authorizer,
3.16including the personnel who will perform the authorizing duties, their qualifications, the
3.17amount of time they will be assigned to this responsibility, and the financial resources
3.18allocated by the organization to this responsibility;
3.19 (3) a description of the application and review process the authorizer will use to
3.20make decisions regarding the granting of charters;
3.21 (4) a description of the type of contract it will arrange with the schools it charters
3.22that meets the provisions of subdivision 6;
3.23 (5) the process to be used for providing ongoing oversight of the school consistent
3.24with the contract expectations specified in clause (4) that assures that the schools chartered
3.25are complying with both the provisions of applicable law and rules, and with the contract;
3.26 (6) a description of the criteria and process the authorizer will use to grant expanded
3.27applications under subdivision 4, paragraph (j);
3.28 (7) the process for making decisions regarding the renewal or termination of
3.29the school's charter based on evidence that demonstrates the academic, organizational,
3.30and financial competency of the school, including its success in increasing student
3.31achievement and meeting the goals of the charter school agreement; and
3.32 (8) an assurance specifying that the organization is committed to serving as an
3.33authorizer for the full five-year term.
3.34 (e) A disapproved applicant under this section may resubmit an application during a
3.35future application period.
4.1 (f) If the governing board of an approved authorizerthat has chartered multiple
4.2schools votes to withdraw as an approved authorizer for a reason unrelated to any
4.3cause under subdivision 23, the authorizer must notify all its chartered schools and the
4.4commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
4.5the next calendar year. The commissioner may approve the transfer of a charter school
4.6to a new authorizer under this paragraph after the new authorizer submits an affidavit to
4.7the commissioner.
4.8 (g) The authorizer must participate in department-approved training.
4.9 (h) An authorizer that chartered a school before August 1, 2009, must apply by
4.10June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
4.11authorizer under this section. For purposes of this paragraph, an authorizer that fails to
4.12submit a timely application is ineligible to charter a school.
4.13 (i) The commissioner shall review an authorizer's performance every five years in
4.14a manner and form determined by the commissioner and may review an authorizer's
4.15performance more frequently at the commissioner's own initiative or at the request of a
4.16charter school operator, charter school board member, or other interested party. The
4.17commissioner, after completing the review, shall transmit a report with findings to the
4.18authorizer. If, consistent with this section, the commissioner finds that an authorizer has
4.19not fulfilled the requirements of this section, the commissioner may subject the authorizer
4.20to corrective action, which may include terminating the contract with the charter school
4.21board of directors of a school it chartered. The commissioner must notify the authorizer
4.22in writing of any findings that may subject the authorizer to corrective action and
4.23the authorizer then has 15 business days to request an informal hearing before the
4.24commissioner takes corrective action. If the commissioner terminates a contract between
4.25an authorizer and a charter school under this paragraph, the commissioner may assist the
4.26charter school in acquiring a new authorizer.
4.27 (j) 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 that provides the commissioner a legally sufficient reason
4.35to take corrective action against an authorizer.
5.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is
5.2amended to read:
5.3 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
5.4a school developer, may charter a licensed teacher under section122A.18, subdivision
5.51 , or a group of individuals that includes one or more licensed teachers under section
5.6122A.18, subdivision 1
, to operate a school subject to the commissioner's approval of the
5.7authorizer's affidavit under paragraph (b). The school must be organized and operated as a
5.8nonprofit corporation under chapter 317A and the provisions under the applicable chapter
5.9shall apply to the school except as provided in this section.
5.10 Notwithstanding 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 nonprofit corporation under chapter 317A and must establish a board of
5.34directors composed of at least five members who are not related parties until a timely
5.35election for members of the ongoing charter school board of directors is held according to
5.36the school's articles and bylaws under paragraph (f). A charter school board of directors
6.1must be composed of at least five members who are not related parties. Staff members
6.2employed at the school, including teachers providing instruction under a contract with a
6.3cooperative, and all parents or legal guardians of children enrolled in the school are the
6.4voters eligible to elect the members of the school's board of directors. A charter school
6.5must notify eligible voters of the school board election dates at least 30 days before the
6.6election. Board of director meetings must comply with chapter 13D.
6.7 (e) Upon the request of an individual, the charter school must make available in
6.8a timely fashion the minutes of meetings of the board of directors, and of members
6.9and committees having any board-delegated authority; financial statements showing all
6.10operations and transactions affecting income, surplus, and deficit during the school's last
6.11annual accounting period; and a balance sheet summarizing assets and liabilities on the
6.12closing date of the accounting period. A charter school also must post on its official Web
6.13site information identifying its authorizer and indicate how to contact that authorizer and
6.14include that same information about its authorizer in other school materials that it makes
6.15available to the public.
6.16 (f) Every charter school board member shall attenddepartment-approved ongoing
6.17training throughout the member's term on board governance, including training on
6.18the board's role and responsibilities, employment policies and practices, and financial
6.19management. A board member who does not begin the required initial training within six
6.20months after being seated and complete that training within 12 months of being seated on
6.21the board is ineligible to continue to serve as a board member. The school shall include in
6.22its annual report the training attended by each board member during the previous year.
6.23 (g) The ongoing board must be elected before the school completes its third year of
6.24operation. Board elections must be held during the school year but may not be conducted
6.25on days when the school is closed for holidays or vacations. The charter school board of
6.26directors shall be composed of at least five nonrelated members and include: (i) at least one
6.27licensed teacher employed at the school or a licensed teacher providing instruction under
6.28contract between the charter school and a cooperative; (ii) the parent or legal guardian
6.29of a student enrolled in the charter school who is not an employee of the charter school;
6.30and (iii) an interested community member who is not employed by the charter school and
6.31does not have a child enrolled in the school. The board may be a teacher majority board
6.32composed of teachers described in this paragraph. The chief financial officer and the chief
6.33administrator may only serve as ex-officio nonvoting board members and may not serve
6.34as a voting member of the board. Charter school employees shall not serve on the board
6.35unless item (i) applies. Contractors providing facilities, goods, or services to a charter
6.36school shall not serve on the board of directors of the charter school. Board bylaws shall
7.1outline the process and procedures for changing the board's governance model, consistent
7.2with chapter 317A. A board 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.
7.7 Any 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 document that:
7.25 (1) the proposed expansion plan demonstrates need and projected enrollment;
7.26 (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
7.27students' improved academic performance and growth on statewide assessments under
7.28chapter 120B;
7.29 (3) the charter school is financially sound and the financing it needs to implement
7.30the proposed expansion exists; and
7.31 (4) the charter school has the governance structure and management capacity to
7.32carry out its expansion.
7.33 (k) The commissioner shall have 30 business days to review and comment on the
7.34supplemental affidavit.The commissioner shall notify the authorizer of any deficiencies in
7.35the supplemental affidavit and the authorizer then has 20 business days to address, to the
7.36commissioner's satisfaction, any deficiencies in the supplemental affidavit. The authorizer
8.1may not give final approval to the schoolmay not to expand grades or add sites until the
8.2commissionerhas approved the supplemental affidavit. The commissioner's approval or
8.3disapproval of a supplemental affidavit is final completes the review and comment process.
8.4(l) A charter school operating under this section may merge with another charter
8.5school. The merger must comply with chapter 317A and section 124D.11, subdivision
8.69, paragraph (g). Upon a formal vote of the board of directors of each charter school
8.7involved and written notice of intent to the authorizer of each school, the schools may
8.8negotiate a merger plan that must include at least the following:
8.9(1) a merger budget, a multiyear operating budget for the merged charter school, a
8.10long-range financial plan, and a plan for the transfer of assets and liabilities to the merged
8.11charter school;
8.12(2) a process for transitioning responsibility of governance, administration, and all
8.13operations to the merged charter school;
8.14(3) a statement of academic, student engagement, and organizational operations
8.15goals for the merged charter school; and
8.16(4) an agreement between involved authorizers on the authorizing plan for the
8.17merged charter school.
8.18The approval of the boards of directors of the merging charter schools, the
8.19authorizers of those schools, and the authorizer of the merged charter school is required
8.20to adopt the merger plan. After the merger plan is adopted, the authorizer of the merged
8.21charter school must submit the plan to the commissioner for review and comment. The
8.22commissioner must complete the review and comment of the plan within 30 business days.
8.23The merger may not take effect until the commissioner completes the review and comment.
8.24 Sec. 3. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
8.25amended to read:
8.26 Subd. 6. Charter contract. The authorization for a charter school must be in the
8.27form of a written contract signed by the authorizer and the board of directors of the charter
8.28school. The contract must be completed within 45 business days of the commissioner's
8.29approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
8.30copy of the signed charter contract within ten business days of its execution. The contract
8.31for a charter school must be in writing and contain at least the following:
8.32 (1) a declaration of the purposes in subdivision 1 that the school intends to carry out
8.33and how the school will report its implementation of those purposes;
8.34 (2) a description of the school program and the specific academic and nonacademic
8.35outcomes that pupils must achieve;
9.1 (3) a statement of admission policies and procedures;
9.2 (4) a governance, management, and administration plan for the school;
9.3 (5) signed agreements from charter school board members to comply with all
9.4federal and state laws governing organizational, programmatic, and financial requirements
9.5applicable to charter schools;
9.6 (6) the criteria, processes, and procedures that the authorizer will use for ongoing
9.7oversight of operational, financial, and academic performance;
9.8 (7) the performance evaluation that is a prerequisite for reviewing a charter contract
9.9under subdivision 15;
9.10 (8) types and amounts of insurance liability coverage to be obtained by the charter
9.11school;
9.12 (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
9.13harmless the authorizer and its officers, agents, and employees from any suit, claim,
9.14or liability arising from any operation of the charter school, and the commissioner and
9.15department officers, agents, and employees notwithstanding section3.736 ;
9.16 (10) the term of the initial contract, which may be up tothree five years plus an
9.17additional preoperational planning year, and up to five years for a renewed contract or a
9.18contract with a new authorizer after a transfer of authorizers, if warranted by the school's
9.19academic, financial, and operational performance;
9.20 (11) how the board of directors or the operators of the charter school will provide
9.21special instruction and services for children with a disability under sections125A.03
9.22to
125A.24 , and
125A.65 , a description of the financial parameters within which the
9.23charter school will operate to provide the special instruction and services to children
9.24with a disability;
9.25(12) the process the authorizer will use for making decisions regarding the renewal,
9.26termination, and an appeal process of such termination, of the school's charter based on
9.27evidence that demonstrates the academic, organizational, and financial competency of the
9.28school, including its success in increasing student achievement and meeting the goals
9.29of the charter school agreement;
9.30(13) a dispute resolution process agreed upon by the authorizer and the charter
9.31school that includes at least the following:
9.32(i) a written notice process to invoke the dispute resolution process and a description
9.33of the matter in dispute;
9.34(ii) a time limit for response; and
9.35(iii) a process for final resolution of the issue in dispute;
10.1(12) (14) the process and criteria the authorizer intends to use to monitor and
10.2evaluate the fiscal and student performance of the charter school, consistent with
10.3subdivision 15; and
10.4(13) (15) the plan for an orderly closing of the school under chapter 317A, if the
10.5closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
10.6and that includes establishing the responsibilities of the school board of directors and the
10.7authorizer and notifying the commissioner, authorizer, school district in which the charter
10.8school is located, and parents of enrolled students about the closure, the transfer of student
10.9records to students' resident districts, and procedures for closing financial operations.
10.10 Sec. 4. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 11, is
10.11amended to read:
10.12 Subd. 11. Employment and other operating matters. (a) A charter school must
10.13employ or contract with necessary teachers, as defined by section122A.15, subdivision 1 ,
10.14who hold valid licenses to perform the particular service for which they are employed in
10.15the school. The charter school's state aid may be reduced under section127A.43 if the
10.16school employs a teacher who is not appropriately licensed or approved by the board of
10.17teaching. The school may employ necessary employees who are not required to hold
10.18teaching licenses to perform duties other than teaching and may contract for other services.
10.19The school may discharge teachers and nonlicensed employees. The charter school board
10.20is subject to section181.932 . When offering employment to a prospective employee, a
10.21charter school must give that employee a written description of the terms and conditions
10.22of employment and the school's personnel policies.
10.23 (b) A person, without holding a valid administrator's license, may perform
10.24administrative, supervisory, or instructional leadership duties. The board of directors shall
10.25establish qualifications for persons that hold administrative, supervisory, or instructional
10.26leadership roles. The qualifications shall include at least the following areas: instruction
10.27and assessment; human resource and personnel management; financial management;
10.28legal and compliance management; effective communication; and board, authorizer, and
10.29community relationships. The board of directors shall use those qualifications as the basis
10.30for job descriptions, hiring, and performance evaluations of those who hold administrative,
10.31supervisory, or instructional leadership roles. The board of directors and an individual
10.32who does not hold a valid administrative license and who serves in an administrative,
10.33supervisory, or instructional leadership position shall develop a professional development
10.34plan. Documentation of the implementation of the professional development plan of these
10.35persons shall be included in the school's annual report.
11.1 (c) The board of directors also shall decide matters related to the operation of the
11.2school, including budgeting, curriculum and operating procedures.
11.3(d) The board of directors shall adopt and implement a performance evaluation
11.4process for all employees of the school. The performance evaluation process for teachers
11.5and administrators must be designed to support and improve pupil learning and student
11.6achievement, instructional leadership, enhancing school outcomes, and be linked to
11.7professional development.
11.8 Sec. 5. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, is
11.9amended to read:
11.10 Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
11.11evaluation of the school's performance before the authorizer renews the charter contract.
11.12The department must review and comment on the authorizer's evaluation process at the
11.13time the authorizer submits its application for approval and each time the authorizer
11.14undergoes its five-year review under subdivision 3, paragraph (e).
11.15 (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
11.16performance of the school, and may for this purpose annually assess a charter school
11.17a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
11.18charter school contract.
11.19 (c) The fee that each charter school pays to an authorizer each year is the greater of:
11.20 (1) the basic formula allowance for that year; or
11.21 (2) the lesser of:
11.22 (i) the maximum fee factor times the basic formula allowance for that year; or
11.23 (ii) the fee factor times the basic formula allowance for that year times the charter
11.24school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
11.25year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
11.26and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
11.273.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
11.28 (d)The department and any charter school it charters must not assess or pay a fee
11.29under paragraphs (b) and (c) An authorizer may not assess a fee for any required services
11.30other than as provided in this subdivision.
11.31 (e) For the preoperational planning period, the authorizer may assess a charter school
11.32a fee equal to the basic formula allowance.
11.33 (f) By September 30 of each year, an authorizer shall submit to the commissioner
11.34a statement of expenditures related to chartering activities during the previous school
12.1year ending June 30. A copy of the statement shall be given to all schools chartered by
12.2the authorizer.
12.3 Sec. 6. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a,
12.4is amended to read:
12.5 Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
12.6may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
12.7existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
12.8must submit an affidavit to the commissioner for approval in the form and manner the
12.9commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
12.10 (b) An affiliated nonprofit building corporation under this subdivision must:
12.11 (1) be incorporated under section 317Aand comply with applicable Internal
12.12Revenue Service regulations;
12.13(2) comply with applicable Internal Revenue Service regulations, including
12.14regulations for "supporting organizations" as defined by the Internal Revenue Service;
12.15(2) (3) submit to the commissioner each fiscal year a list of current board members
12.16and a copy of its annual audit; and
12.17(3) (4) comply with government data practices law under chapter 13.
12.18An affiliated nonprofit building corporation must not serve as the leasing agent for
12.19property or facilities it does not own. A charter school that leases a facility from an
12.20affiliated nonprofit building corporation that does not own the leased facility is ineligible
12.21to receive charter school lease aid. The state is immune from liability resulting from a
12.22contract between a charter school and an affiliated nonprofit building corporation.
12.23 (c) A charter school may organize an affiliated nonprofit building corporation to
12.24renovate or purchase an existing facility to serve as a school if the charter school:
12.25 (1) has been operating for at least five consecutive school years;
12.26 (2) has had a net positive unreserved general fund balance as of June 30 in the
12.27preceding five fiscal years;
12.28 (3) has a long-range strategic and financial plan;
12.29 (4) completes a feasibility study of available buildings; and
12.30 (5) documents enrollment projections and the need to use an affiliated building
12.31corporation to renovate or purchase an existing facility to serve as a school.
12.32 (d) A charter school may organize an affiliated nonprofit building corporation to
12.33construct a new school facility if the charter school:
12.34 (1) demonstrates the lack of facilities available to serve as a school;
12.35 (2) has been operating for at least eight consecutive school years;
13.1 (3) has had a net positive unreserved general fund balance as of June 30 in the
13.2precedingeight five fiscal years;
13.3 (4) completes a feasibility study of facility options;
13.4 (5) has a long-range strategic and financial plan that includes enrollment projections
13.5and demonstrates the need for constructing a new school facility; and
13.6 (6) has a positive review and comment from the commissioner under section
13.7123B.71
.
13.8 Sec. 7. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 23, is
13.9amended to read:
13.10 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
13.11The duration of the contract with an authorizer must be for the term contained in the
13.12contract according to subdivision 6. The authorizer may or may not renew a contract at
13.13the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
13.14terminate a contract during the term of the contract for any ground listed in paragraph (b).
13.15At least 60 business days before not renewing or terminating a contract, the authorizer
13.16shall notify the board of directors of the charter school of the proposed action in writing.
13.17The notice shall state the grounds for the proposed action in reasonable detail and that the
13.18charter school's board of directors may request in writing an informal hearing before the
13.19authorizer within 15 business days of receiving notice of nonrenewal or termination of
13.20the contract. Failure by the board of directors to make a written request for an informal
13.21hearing within the 15-business-day period shall be treated as acquiescence to the proposed
13.22action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
13.23business days' notice to the charter school's board of directors of the hearing date. The
13.24authorizer shall conduct an informal hearing before taking final action. The authorizer
13.25shall take final action to renew or not renew a contract no later than 20 business days
13.26before the proposed date for terminating the contract or the end date of the contract.
13.27 (b) A contract may be terminated or not renewed upon any of the following grounds:
13.28 (1) failure to meet the requirements for pupil performance contained in the contract;
13.29 (2) failure to meet generally accepted standards of fiscal management;
13.30 (3) violations of law; or
13.31 (4) other good cause shown.
13.32 If a contract is terminated or not renewed under this paragraph, the school must be
13.33dissolved according to the applicable provisions of chapter 317A.
13.34 (c) If the authorizer and the charter school board of directors mutually agree to
13.35terminate or not renew the contract, for reasons other than paragraph (b), achange in
14.1transfer of authorizers is allowedif the commissioner approves the change to a different
14.2eligible authorizer to authorize the charter school. Both parties at the end of the current
14.3contract with the consent of the current authorizer and after review and comment of the
14.4commissioner. The school and current authorizer must jointly submit their intent in writing
14.5to the commissioner to mutually terminate the contract. The authorizer that is a party to
14.6the existing contract must inform the proposed authorizer about the fiscal and operational
14.7statusand, student performance level, and any unresolved issues related to the contract
14.8or oversight of the school.Before the commissioner determines whether to approve a
14.9change in authorizer, the proposed authorizer must identify any outstanding issues in the
14.10proposed charter contract that were unresolved in the previous charter contract and have
14.11the charter school agree to resolve those issues. If no change in authorizer is approved,
14.12the school must be dissolved according to applicable law and the terms of the contract.
14.13The proposed authorizer must submit to the commissioner a copy of the proposed new
14.14contract for comment and review. The contract must identify all unresolved contract or
14.15oversight issues that exist and include a plan that the charter school and authorizer have
14.16agreed upon to resolve those issues. The commissioner shall have 20 business days to
14.17conduct the review and comment of the contract. The transfer may not go into effect until
14.18the review and comment of the commissioner is completed.
14.19 (d) The commissioner, after providing reasonable notice to the board of directors of
14.20a charter school and the existing authorizer, and after providing an opportunity for a public
14.21hearing, may terminate the existing contract between the authorizer and the charter school
14.22board if the charter school has a history of:
14.23 (1) failure to meet pupil performance requirements consistent with state law;
14.24 (2) financial mismanagement or failure to meet generally accepted standards of
14.25fiscal management; or
14.26 (3) repeated or major violations of the law.
14.27 Sec. 8. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 25, is
14.28amended to read:
14.29 Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
14.30school may sue and be sued.
14.31 (b) The board may not levy taxes or issue bonds.
14.32 (c) The commissioner, an authorizer, members of the board of an authorizer in
14.33their official capacity, and employees of an authorizer are immune from civil or criminal
14.34liability with respect to all activities related to a charter school they approve or authorize.
14.35The board of directors shall obtain at least the amount of and types of insurance up to the
15.1applicable tort liability limits under chapter 466. The charter school board must submit
15.2a copy of the insurance policy to its authorizer and the commissioner before starting
15.3operations. The charter school board mustsubmit notify its authorizer of changes in its
15.4insurance carrier or policyto its authorizer and the commissioner amount limits within
15.520 business days of the change.
15.6(d) Notwithstanding section3.736 , the charter school shall assume full liability for
15.7its activities and indemnify and hold harmless the authorizer and its officers, agents, and
15.8employees from any suit, claim, or liability arising from any operation of the charter school
15.9and the commissioner and department officers, agents, and employees. A charter school
15.10is not required to indemnify or hold harmless a state employee if the state would not be
15.11required to indemnify and hold the employee harmless under section3.736, subdivision 9 .
1.3Minnesota Statutes 2011 Supplement, section 124D.10, subdivisions 3, 4, 6,
1.411, 15, 17a, 23, 25.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3,
1.7is amended to read:
1.8 Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
1.9subdivision have the meanings given them.
1.10 "Application" to receive approval as an authorizer means the proposal an eligible
1.11authorizer submits to the commissioner under paragraph (c) before that authorizer is able
1.12to submit any affidavit to charter to a school.
1.13 "Application" under subdivision 4 means the charter school business plan a
1.14school developer submits to an authorizer for approval to establish a charter school that
1.15documents the school developer's mission statement, school purposes, program design,
1.16financial plan, governance and management structure, and background and experience,
1.17plus any other information the authorizer requests. The application also shall include a
1.18"statement of assurances" of legal compliance prescribed by the commissioner.
1.19 "Affidavit" means a written statement the authorizer submits to the commissioner
1.20for approval to establish a charter school under subdivision 4 attesting to its review and
1.21approval process before chartering a school.
1.22 (b) The following organizations may authorize one or more charter schools:
1.23 (1) a school board; intermediate school district school board; education district
1.24organized under sections
2.1 (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
2.2of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
2.3natural person that directly or indirectly, through one or more intermediaries, controls,
2.4is controlled by, or is under common control with the nonpublic sectarian or religious
2.5institution, and any other charitable organization under this clause that in the federal IRS
2.6Form 1023, Part IV, describes activities indicating a religious purpose, that:
2.7 (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
2.8Foundations;
2.9 (ii) is registered with the attorney general's office; and
2.10 (iii) is incorporated in the state of Minnesota and has been operating continuously
2.11for at least five years but does not operate a charter school;
2.12 (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
2.13four-year degrees and is registered with the Minnesota Office of Higher Education under
2.14chapter 136A; community college, state university, or technical college governed by the
2.15Board of Trustees of the Minnesota State Colleges and Universities; or the University
2.16of Minnesota;
2.17 (4) a nonprofit corporation subject to chapter 317A, described in section
2.18and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
2.19of 1986, may authorize one or more charter schools if the charter school has operated
2.20for at least three years under a different authorizer and if the nonprofit corporation has
2.21existed for at least 25 years; or
2.22 (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
2.23under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
2.24of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
2.25in being approved as an authorizer under this paragraph must submit a proposal to the
2.26commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
2.27Such authorizers shall consider and approve applications using the criteria provided in
2.28subdivision 4 and shall not limit the applications it solicits, considers, or approves to any
2.29single curriculum, learning program, or method.
2.30 (c) An eligible authorizer under this subdivision must apply to the commissioner for
2.31approval as an authorizer before submitting any affidavit to the commissioner to charter
2.32a school. The application for approval as a charter school authorizer must demonstrate
2.33the applicant's ability to implement the procedures and satisfy the criteria for chartering a
2.34school under this section. The commissioner must approve or disapprove an application
2.35within 45 business days of the application deadline. If the commissioner disapproves
2.36the application, the commissioner must notify the applicant of the specific deficiencies
3.1in writing and the applicant then has 20 business days to address the deficiencies to the
3.2commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
3.3business days to make a final decision to approve or disapprove the application. Failing to
3.4address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
3.5be an authorizer. The commissioner, in establishing criteria for approval, must consider
3.6the applicant's:
3.7 (1) capacity and infrastructure;
3.8 (2) application criteria and process;
3.9 (3) contracting process;
3.10 (4) ongoing oversight and evaluation processes; and
3.11 (5) renewal criteria and processes.
3.12 (d) An applicant must include in its application to the commissioner to be an
3.13approved authorizer at least the following:
3.14 (1) how chartering schools is a way for the organization to carry out its mission;
3.15 (2) a description of the capacity of the organization to serve as an authorizer,
3.16including the personnel who will perform the authorizing duties, their qualifications, the
3.17amount of time they will be assigned to this responsibility, and the financial resources
3.18allocated by the organization to this responsibility;
3.19 (3) a description of the application and review process the authorizer will use to
3.20make decisions regarding the granting of charters;
3.21 (4) a description of the type of contract it will arrange with the schools it charters
3.22that meets the provisions of subdivision 6;
3.23 (5) the process to be used for providing ongoing oversight of the school consistent
3.24with the contract expectations specified in clause (4) that assures that the schools chartered
3.25are complying with both the provisions of applicable law and rules, and with the contract;
3.26 (6) a description of the criteria and process the authorizer will use to grant expanded
3.27applications under subdivision 4, paragraph (j);
3.28 (7) the process for making decisions regarding the renewal or termination of
3.29the school's charter based on evidence that demonstrates the academic, organizational,
3.30and financial competency of the school, including its success in increasing student
3.31achievement and meeting the goals of the charter school agreement; and
3.32 (8) an assurance specifying that the organization is committed to serving as an
3.33authorizer for the full five-year term.
3.34 (e) A disapproved applicant under this section may resubmit an application during a
3.35future application period.
4.1 (f) If the governing board of an approved authorizer
4.2
4.3cause under subdivision 23, the authorizer must notify all its chartered schools and the
4.4commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
4.5the next calendar year. The commissioner may approve the transfer of a charter school
4.6to a new authorizer under this paragraph after the new authorizer submits an affidavit to
4.7the commissioner.
4.8 (g) The authorizer must participate in department-approved training.
4.9 (h) An authorizer that chartered a school before August 1, 2009, must apply by
4.10June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
4.11authorizer under this section. For purposes of this paragraph, an authorizer that fails to
4.12submit a timely application is ineligible to charter a school.
4.13 (i) The commissioner shall review an authorizer's performance every five years in
4.14a manner and form determined by the commissioner and may review an authorizer's
4.15performance more frequently at the commissioner's own initiative or at the request of a
4.16charter school operator, charter school board member, or other interested party. The
4.17commissioner, after completing the review, shall transmit a report with findings to the
4.18authorizer. If, consistent with this section, the commissioner finds that an authorizer has
4.19not fulfilled the requirements of this section, the commissioner may subject the authorizer
4.20to corrective action, which may include terminating the contract with the charter school
4.21board of directors of a school it chartered. The commissioner must notify the authorizer
4.22in writing of any findings that may subject the authorizer to corrective action and
4.23the authorizer then has 15 business days to request an informal hearing before the
4.24commissioner takes corrective action. If the commissioner terminates a contract between
4.25an authorizer and a charter school under this paragraph, the commissioner may assist the
4.26charter school in acquiring a new authorizer.
4.27 (j) 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 that provides the commissioner a legally sufficient reason
4.35to take corrective action against an authorizer.
5.1 Sec. 2. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is
5.2amended to read:
5.3 Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
5.4a school developer, may charter a licensed teacher under section
5.51
5.7authorizer's affidavit under paragraph (b). The school must be organized and operated as a
5.8nonprofit corporation under chapter 317A and the provisions under the applicable chapter
5.9shall apply to the school except as provided in this section.
5.10 Notwithstanding 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 nonprofit corporation under chapter 317A and must establish a board of
5.34directors composed of at least five members who are not related parties until a timely
5.35election for members of the ongoing charter school board of directors is held according to
5.36the school's articles and bylaws under paragraph (f). A charter school board of directors
6.1must be composed of at least five members who are not related parties. Staff members
6.2employed at the school, including teachers providing instruction under a contract with a
6.3cooperative, and all parents or legal guardians of children enrolled in the school are the
6.4voters eligible to elect the members of the school's board of directors. A charter school
6.5must notify eligible voters of the school board election dates at least 30 days before the
6.6election. Board of director meetings must comply with chapter 13D.
6.7 (e) Upon the request of an individual, the charter school must make available in
6.8a timely fashion the minutes of meetings of the board of directors, and of members
6.9and committees having any board-delegated authority; financial statements showing all
6.10operations and transactions affecting income, surplus, and deficit during the school's last
6.11annual accounting period; and a balance sheet summarizing assets and liabilities on the
6.12closing date of the accounting period. A charter school also must post on its official Web
6.13site information identifying its authorizer and indicate how to contact that authorizer and
6.14include that same information about its authorizer in other school materials that it makes
6.15available to the public.
6.16 (f) Every charter school board member shall attend
6.17training throughout the member's term on board governance, including training on
6.18the board's role and responsibilities, employment policies and practices, and financial
6.19management. A board member who does not begin the required initial training within six
6.20months after being seated and complete that training within 12 months of being seated on
6.21the board is ineligible to continue to serve as a board member. The school shall include in
6.22its annual report the training attended by each board member during the previous year.
6.23 (g) The ongoing board must be elected before the school completes its third year of
6.24operation. Board elections must be held during the school year but may not be conducted
6.25on days when the school is closed for holidays or vacations. The charter school board of
6.26directors shall be composed of at least five nonrelated members and include: (i) at least one
6.27licensed teacher employed at the school or a licensed teacher providing instruction under
6.28contract between the charter school and a cooperative; (ii) the parent or legal guardian
6.29of a student enrolled in the charter school who is not an employee of the charter school;
6.30and (iii) an interested community member who is not employed by the charter school and
6.31does not have a child enrolled in the school. The board may be a teacher majority board
6.32composed of teachers described in this paragraph. The chief financial officer and the chief
6.33administrator may only serve as ex-officio nonvoting board members and may not serve
6.34as a voting member of the board. Charter school employees shall not serve on the board
6.35unless item (i) applies. Contractors providing facilities, goods, or services to a charter
6.36school shall not serve on the board of directors of the charter school. Board bylaws shall
7.1outline the process and procedures for changing the board's governance model, consistent
7.2with chapter 317A. A board 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.
7.7 Any 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 document that:
7.25 (1) the proposed expansion plan demonstrates need and projected enrollment;
7.26 (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
7.27students' improved academic performance and growth on statewide assessments under
7.28chapter 120B;
7.29 (3) the charter school is financially sound and the financing it needs to implement
7.30the proposed expansion exists; and
7.31 (4) the charter school has the governance structure and management capacity to
7.32carry out its expansion.
7.33 (k) The commissioner shall have 30 business days to review and comment on the
7.34supplemental affidavit.
7.35
7.36
8.1may not give final approval to the school
8.2commissioner
8.3
8.4(l) A charter school operating under this section may merge with another charter
8.5school. The merger must comply with chapter 317A and section 124D.11, subdivision
8.69, paragraph (g). Upon a formal vote of the board of directors of each charter school
8.7involved and written notice of intent to the authorizer of each school, the schools may
8.8negotiate a merger plan that must include at least the following:
8.9(1) a merger budget, a multiyear operating budget for the merged charter school, a
8.10long-range financial plan, and a plan for the transfer of assets and liabilities to the merged
8.11charter school;
8.12(2) a process for transitioning responsibility of governance, administration, and all
8.13operations to the merged charter school;
8.14(3) a statement of academic, student engagement, and organizational operations
8.15goals for the merged charter school; and
8.16(4) an agreement between involved authorizers on the authorizing plan for the
8.17merged charter school.
8.18The approval of the boards of directors of the merging charter schools, the
8.19authorizers of those schools, and the authorizer of the merged charter school is required
8.20to adopt the merger plan. After the merger plan is adopted, the authorizer of the merged
8.21charter school must submit the plan to the commissioner for review and comment. The
8.22commissioner must complete the review and comment of the plan within 30 business days.
8.23The merger may not take effect until the commissioner completes the review and comment.
8.24 Sec. 3. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
8.25amended to read:
8.26 Subd. 6. Charter contract. The authorization for a charter school must be in the
8.27form of a written contract signed by the authorizer and the board of directors of the charter
8.28school. The contract must be completed within 45 business days of the commissioner's
8.29approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
8.30copy of the signed charter contract within ten business days of its execution. The contract
8.31for a charter school must be in writing and contain at least the following:
8.32 (1) a declaration of the purposes in subdivision 1 that the school intends to carry out
8.33and how the school will report its implementation of those purposes;
8.34 (2) a description of the school program and the specific academic and nonacademic
8.35outcomes that pupils must achieve;
9.1 (3) a statement of admission policies and procedures;
9.2 (4) a governance, management, and administration plan for the school;
9.3 (5) signed agreements from charter school board members to comply with all
9.4federal and state laws governing organizational, programmatic, and financial requirements
9.5applicable to charter schools;
9.6 (6) the criteria, processes, and procedures that the authorizer will use for ongoing
9.7oversight of operational, financial, and academic performance;
9.8 (7) the performance evaluation that is a prerequisite for reviewing a charter contract
9.9under subdivision 15;
9.10 (8) types and amounts of insurance liability coverage to be obtained by the charter
9.11school;
9.12 (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
9.13harmless the authorizer and its officers, agents, and employees from any suit, claim,
9.14or liability arising from any operation of the charter school, and the commissioner and
9.15department officers, agents, and employees notwithstanding section
9.16 (10) the term of the initial contract, which may be up to
9.17additional preoperational planning year, and up to five years for a renewed contract or a
9.18contract with a new authorizer after a transfer of authorizers, if warranted by the school's
9.19academic, financial, and operational performance;
9.20 (11) how the board of directors or the operators of the charter school will provide
9.21special instruction and services for children with a disability under sections
9.23charter school will operate to provide the special instruction and services to children
9.24with a disability;
9.25(12) the process the authorizer will use for making decisions regarding the renewal,
9.26termination, and an appeal process of such termination, of the school's charter based on
9.27evidence that demonstrates the academic, organizational, and financial competency of the
9.28school, including its success in increasing student achievement and meeting the goals
9.29of the charter school agreement;
9.30(13) a dispute resolution process agreed upon by the authorizer and the charter
9.31school that includes at least the following:
9.32(i) a written notice process to invoke the dispute resolution process and a description
9.33of the matter in dispute;
9.34(ii) a time limit for response; and
9.35(iii) a process for final resolution of the issue in dispute;
10.1
10.2evaluate the fiscal and student performance of the charter school, consistent with
10.3subdivision 15; and
10.4
10.5closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
10.6and that includes establishing the responsibilities of the school board of directors and the
10.7authorizer and notifying the commissioner, authorizer, school district in which the charter
10.8school is located, and parents of enrolled students about the closure, the transfer of student
10.9records to students' resident districts, and procedures for closing financial operations.
10.10 Sec. 4. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 11, is
10.11amended to read:
10.12 Subd. 11. Employment and other operating matters. (a) A charter school must
10.13employ or contract with necessary teachers, as defined by section
10.14who hold valid licenses to perform the particular service for which they are employed in
10.15the school. The charter school's state aid may be reduced under section
10.16school employs a teacher who is not appropriately licensed or approved by the board of
10.17teaching. The school may employ necessary employees who are not required to hold
10.18teaching licenses to perform duties other than teaching and may contract for other services.
10.19The school may discharge teachers and nonlicensed employees. The charter school board
10.20is subject to section
10.21charter school must give that employee a written description of the terms and conditions
10.22of employment and the school's personnel policies.
10.23 (b) A person, without holding a valid administrator's license, may perform
10.24administrative, supervisory, or instructional leadership duties. The board of directors shall
10.25establish qualifications for persons that hold administrative, supervisory, or instructional
10.26leadership roles. The qualifications shall include at least the following areas: instruction
10.27and assessment; human resource and personnel management; financial management;
10.28legal and compliance management; effective communication; and board, authorizer, and
10.29community relationships. The board of directors shall use those qualifications as the basis
10.30for job descriptions, hiring, and performance evaluations of those who hold administrative,
10.31supervisory, or instructional leadership roles. The board of directors and an individual
10.32who does not hold a valid administrative license and who serves in an administrative,
10.33supervisory, or instructional leadership position shall develop a professional development
10.34plan. Documentation of the implementation of the professional development plan of these
10.35persons shall be included in the school's annual report.
11.1 (c) The board of directors also shall decide matters related to the operation of the
11.2school, including budgeting, curriculum and operating procedures.
11.3(d) The board of directors shall adopt and implement a performance evaluation
11.4process for all employees of the school. The performance evaluation process for teachers
11.5and administrators must be designed to support and improve pupil learning and student
11.6achievement, instructional leadership, enhancing school outcomes, and be linked to
11.7professional development.
11.8 Sec. 5. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, is
11.9amended to read:
11.10 Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
11.11evaluation of the school's performance before the authorizer renews the charter contract.
11.12The department must review and comment on the authorizer's evaluation process at the
11.13time the authorizer submits its application for approval and each time the authorizer
11.14undergoes its five-year review under subdivision 3, paragraph (e).
11.15 (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
11.16performance of the school, and may for this purpose annually assess a charter school
11.17a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
11.18charter school contract.
11.19 (c) The fee that each charter school pays to an authorizer each year is the greater of:
11.20 (1) the basic formula allowance for that year; or
11.21 (2) the lesser of:
11.22 (i) the maximum fee factor times the basic formula allowance for that year; or
11.23 (ii) the fee factor times the basic formula allowance for that year times the charter
11.24school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
11.25year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
11.26and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
11.273.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
11.28 (d)
11.29
11.30other than as provided in this subdivision.
11.31 (e) For the preoperational planning period, the authorizer may assess a charter school
11.32a fee equal to the basic formula allowance.
11.33 (f) By September 30 of each year, an authorizer shall submit to the commissioner
11.34a statement of expenditures related to chartering activities during the previous school
12.1year ending June 30. A copy of the statement shall be given to all schools chartered by
12.2the authorizer.
12.3 Sec. 6. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a,
12.4is amended to read:
12.5 Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
12.6may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
12.7existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
12.8must submit an affidavit to the commissioner for approval in the form and manner the
12.9commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
12.10 (b) An affiliated nonprofit building corporation under this subdivision must:
12.11 (1) be incorporated under section 317A
12.12
12.13(2) comply with applicable Internal Revenue Service regulations, including
12.14regulations for "supporting organizations" as defined by the Internal Revenue Service;
12.15
12.16and a copy of its annual audit; and
12.17
12.18An affiliated nonprofit building corporation must not serve as the leasing agent for
12.19property or facilities it does not own. A charter school that leases a facility from an
12.20affiliated nonprofit building corporation that does not own the leased facility is ineligible
12.21to receive charter school lease aid. The state is immune from liability resulting from a
12.22contract between a charter school and an affiliated nonprofit building corporation.
12.23 (c) A charter school may organize an affiliated nonprofit building corporation to
12.24renovate or purchase an existing facility to serve as a school if the charter school:
12.25 (1) has been operating for at least five consecutive school years;
12.26 (2) has had a net positive unreserved general fund balance as of June 30 in the
12.27preceding five fiscal years;
12.28 (3) has a long-range strategic and financial plan;
12.29 (4) completes a feasibility study of available buildings; and
12.30 (5) documents enrollment projections and the need to use an affiliated building
12.31corporation to renovate or purchase an existing facility to serve as a school.
12.32 (d) A charter school may organize an affiliated nonprofit building corporation to
12.33construct a new school facility if the charter school:
12.34 (1) demonstrates the lack of facilities available to serve as a school;
12.35 (2) has been operating for at least eight consecutive school years;
13.1 (3) has had a net positive unreserved general fund balance as of June 30 in the
13.2preceding
13.3 (4) completes a feasibility study of facility options;
13.4 (5) has a long-range strategic and financial plan that includes enrollment projections
13.5and demonstrates the need for constructing a new school facility; and
13.6 (6) has a positive review and comment from the commissioner under section
13.8 Sec. 7. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 23, is
13.9amended to read:
13.10 Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
13.11The duration of the contract with an authorizer must be for the term contained in the
13.12contract according to subdivision 6. The authorizer may or may not renew a contract at
13.13the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
13.14terminate a contract during the term of the contract for any ground listed in paragraph (b).
13.15At least 60 business days before not renewing or terminating a contract, the authorizer
13.16shall notify the board of directors of the charter school of the proposed action in writing.
13.17The notice shall state the grounds for the proposed action in reasonable detail and that the
13.18charter school's board of directors may request in writing an informal hearing before the
13.19authorizer within 15 business days of receiving notice of nonrenewal or termination of
13.20the contract. Failure by the board of directors to make a written request for an informal
13.21hearing within the 15-business-day period shall be treated as acquiescence to the proposed
13.22action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
13.23business days' notice to the charter school's board of directors of the hearing date. The
13.24authorizer shall conduct an informal hearing before taking final action. The authorizer
13.25shall take final action to renew or not renew a contract no later than 20 business days
13.26before the proposed date for terminating the contract or the end date of the contract.
13.27 (b) A contract may be terminated or not renewed upon any of the following grounds:
13.28 (1) failure to meet the requirements for pupil performance contained in the contract;
13.29 (2) failure to meet generally accepted standards of fiscal management;
13.30 (3) violations of law; or
13.31 (4) other good cause shown.
13.32 If a contract is terminated or not renewed under this paragraph, the school must be
13.33dissolved according to the applicable provisions of chapter 317A.
13.34 (c) If the authorizer and the charter school board of directors mutually agree to
13.35terminate or not renew the contract, for reasons other than paragraph (b), a
14.1transfer of authorizers is allowed
14.2
14.3contract with the consent of the current authorizer and after review and comment of the
14.4commissioner. The school and current authorizer must jointly submit their intent in writing
14.5to the commissioner to mutually terminate the contract. The authorizer that is a party to
14.6the existing contract must inform the proposed authorizer about the fiscal and operational
14.7status
14.8or oversight of the school.
14.9
14.10
14.11
14.12
14.13The proposed authorizer must submit to the commissioner a copy of the proposed new
14.14contract for comment and review. The contract must identify all unresolved contract or
14.15oversight issues that exist and include a plan that the charter school and authorizer have
14.16agreed upon to resolve those issues. The commissioner shall have 20 business days to
14.17conduct the review and comment of the contract. The transfer may not go into effect until
14.18the review and comment of the commissioner is completed.
14.19 (d) The commissioner, after providing reasonable notice to the board of directors of
14.20a charter school and the existing authorizer, and after providing an opportunity for a public
14.21hearing, may terminate the existing contract between the authorizer and the charter school
14.22board if the charter school has a history of:
14.23 (1) failure to meet pupil performance requirements consistent with state law;
14.24 (2) financial mismanagement or failure to meet generally accepted standards of
14.25fiscal management; or
14.26 (3) repeated or major violations of the law.
14.27 Sec. 8. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 25, is
14.28amended to read:
14.29 Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
14.30school may sue and be sued.
14.31 (b) The board may not levy taxes or issue bonds.
14.32 (c) The commissioner, an authorizer, members of the board of an authorizer in
14.33their official capacity, and employees of an authorizer are immune from civil or criminal
14.34liability with respect to all activities related to a charter school they approve or authorize.
14.35The board of directors shall obtain at least the amount of and types of insurance up to the
15.1applicable tort liability limits under chapter 466. The charter school board must submit
15.2a copy of the insurance policy to its authorizer and the commissioner before starting
15.3operations. The charter school board must
15.4insurance carrier or policy
15.520 business days of the change.
15.6(d) Notwithstanding section
15.7its activities and indemnify and hold harmless the authorizer and its officers, agents, and
15.8employees from any suit, claim, or liability arising from any operation of the charter school
15.9and the commissioner and department officers, agents, and employees. A charter school
15.10is not required to indemnify or hold harmless a state employee if the state would not be
15.11required to indemnify and hold the employee harmless under section
