Bill Text: MN SF2119 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Charter school aid payments provisions modification

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced - Dead) 2012-02-27 - Referred to Education [SF2119 Detail]

Download: Minnesota-2011-SF2119-Introduced.html

1.1A bill for an act
1.2relating to education finance; requiring 90 percent aid payments for charter
1.3schools in their first three years;amending Minnesota Statutes 2011 Supplement,
1.4section 124D.11, subdivision 9.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2011 Supplement, section 124D.11, subdivision 9, is
1.7amended to read:
1.8    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
1.9127A.45, subdivision 3 , (1) if the current year aid payment percentage under section
1.10127A.45, subdivision 2 , paragraph (d), is 90 or greater, or (2) if the charter school is in its
1.11first three years of operation, aid payments for the current fiscal year to a charter school
1.12shall be of an equal amount on each of the 24 payment dates. Notwithstanding section
1.13127A.45, subdivision 3 , if the current year aid payment percentage under section 127A.45,
1.14subdivision 2
, paragraph (d), is less than 90 and the charter school is not in its first three
1.15years of operation, aid payments for the current fiscal year to a charter school shall be of
1.16an equal amount on each of the 16 payment dates in July through February.
1.17(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
1.18operation on or prior to June 30 of a school year, for the payment periods occurring after
1.19the school ceases serving students, the commissioner shall withhold the estimated state aid
1.20owed the school. The charter school board of directors and authorizer must submit to the
1.21commissioner a closure plan under chapter 308A or 317A, and financial information about
1.22the school's liabilities and assets. After receiving the closure plan, financial information,
1.23an audit of pupil counts, documentation of lease expenditures, and monitoring of special
1.24education expenditures, the commissioner may release cash withheld and may continue
2.1regular payments up to the current year payment percentages if further amounts are
2.2owed. If, based on audits and monitoring, the school received state aid in excess of the
2.3amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
2.4overpayment. For a charter school ceasing operations prior to, or at the end of, a school
2.5year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
2.6be made after receiving the closure plan, audit of pupil counts, monitoring of special
2.7education expenditures, documentation of lease expenditures, and school submission of
2.8Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
2.9final year of operation. Final payment may be made upon receipt of audited financial
2.10statements under section 123B.77, subdivision 3.
2.11(c) If a charter school fails to comply with the commissioner's directive to return,
2.12for cause, federal or state funds administered by the department, the commissioner may
2.13withhold an amount of state aid sufficient to satisfy the directive.
2.14(d) If, within the timeline under section 471.425, a charter school fails to pay the state
2.15of Minnesota, a school district, intermediate school district, or service cooperative after
2.16receiving an undisputed invoice for goods and services, the commissioner may withhold
2.17an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
2.18aid to the interested state agency, school district, intermediate school district, or service
2.19cooperative. An interested state agency, school district, intermediate school district, or
2.20education cooperative shall notify the commissioner when a charter school fails to pay an
2.21undisputed invoice within 75 business days of when it received the original invoice.
2.22(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
2.23of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
2.24of student attendance for that school year.
2.25(f) In order to receive state aid payments under this subdivision, a charter school in
2.26its first three years of operation must submit a school calendar in the form and manner
2.27requested by the department and a quarterly report to the Department of Education. The
2.28report must list each student by grade, show the student's start and end dates, if any,
2.29with the charter school, and for any student participating in a learning year program,
2.30the report must list the hours and times of learning year activities. The report must be
2.31submitted not more than two weeks after the end of the calendar quarter to the department.
2.32The department must develop a Web-based reporting form for charter schools to use
2.33when submitting enrollment reports. A charter school in its fourth and subsequent year of
2.34operation must submit a school calendar and enrollment information to the department in
2.35the form and manner requested by the department.
3.1(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
3.2school and satisfaction of creditors, cash and investment balances remaining shall be
3.3returned to the state.
3.4(h) Notwithstanding section 127A.45, subdivision 2, during the first three years of a
3.5charter school's operations, the charter school's current year aid payment percentage
3.6equals 90 percent.
3.7(h) (i) A charter school must have a valid, signed contract under section 124D.10,
3.8subdivision 6, on file at the Department of Education at least 15 days prior to the date of
3.9first payment of state aid for the fiscal year.
3.10(i) (j) State aid entitlements shall be computed for a charter school only for the
3.11portion of a school year for which it has a valid, signed contract under section 124D.10,
3.12subdivision 6.
3.13EFFECTIVE DATE.This section is effective for fiscal year 2013 and later.
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