Bill Text: MN SF334 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Charter school authorizer restrictions modifications

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-02-14 - Referred to Education [SF334 Detail]

Download: Minnesota-2011-SF334-Introduced.html

1.1A bill for an act
1.2relating to education; modifying charter school authorizer restrictions;amending
1.3Minnesota Statutes 2010, section 124D.10, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2010, section 124D.10, subdivision 3, is amended to
1.6read:
1.7    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
1.8subdivision have the meanings given them.
1.9"Application" to receive approval as an authorizer means the proposal an eligible
1.10authorizer submits to the commissioner under paragraph (c) before that authorizer is able
1.11to submit any affidavit to charter to a school.
1.12"Application" under subdivision 4 means the charter school business plan a
1.13school developer submits to an authorizer for approval to establish a charter school that
1.14documents the school developer's mission statement, school purposes, program design,
1.15financial plan, governance and management structure, and background and experience,
1.16plus any other information the authorizer requests. The application also shall include a
1.17"statement of assurances" of legal compliance prescribed by the commissioner.
1.18"Affidavit" means a written statement the authorizer submits to the commissioner
1.19for approval to establish a charter school under subdivision 4 attesting to its review and
1.20approval process before chartering a school.
1.21"Affidavit" means the form an authorizer submits to the commissioner that is a
1.22precondition to a charter school organizing an affiliated nonprofit building corporation
1.23under subdivision 17a.
1.24(b) The following organizations may authorize one or more charter schools:
2.1(1) a school board; intermediate school district school board; education district
2.2organized under sections 123A.15 to 123A.19;
2.3(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
2.4of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
2.5natural person that directly or indirectly, through one or more intermediaries, controls,
2.6is controlled by, or is under common control with the nonpublic sectarian or religious
2.7institution, and any other charitable organization under this clause that in the federal IRS
2.8Form 1023, Part IV, describes activities indicating a religious purpose, that:
2.9(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
2.10Foundations;
2.11(ii) is registered with the attorney general's office;
2.12(iii) reports an end-of-year fund balance of at least $2,000,000; and
2.13(iv) is incorporated in the state of Minnesota;
2.14(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
2.15four-year degrees and is registered with the Minnesota Office of Higher Education under
2.16chapter 136A; community college, state university, or technical college governed by the
2.17Board of Trustees of the Minnesota State Colleges and Universities; or the University of
2.18Minnesota; or
2.19(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
2.20and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
2.21of 1986, may authorize one or more charter schools if the charter school has operated
2.22for at least three years under a different authorizer and if the nonprofit corporation has
2.23existed for at least 25 years.
2.24(5) no more than three single-purpose authorizers that are charitable, nonsectarian
2.25organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
2.26incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
2.27organizations interested in being approved as an authorizer under this paragraph must
2.28submit a proposal to the commissioner that includes the provisions of paragraph (c) and a
2.29five-year financial plan. Such authorizers shall consider and approve applications using the
2.30criteria provided in subdivision 4 and shall not limit the applications it solicits, considers,
2.31or approves to any single curriculum, learning program, or method. The commissioner
2.32may approve single-purpose authorizers which limit their focus to authorizing schools (i)
2.33designed to close the achievement gap by including prekindergarten and primary grades;
2.34or (ii) which create a grades 9 through 14 partnership with one or more postsecondary
2.35institutions where students complete one or more years of postsecondary credit as a part of
2.36the school model.
3.1(c) An eligible authorizer under this subdivision must apply to the commissioner for
3.2approval as an authorizer before submitting any affidavit to the commissioner to charter
3.3a school. The application for approval as a charter school authorizer must demonstrate
3.4the applicant's ability to implement the procedures and satisfy the criteria for chartering a
3.5school under this section. The commissioner must approve or disapprove an application
3.6within 60 business days of the application deadline. If the commissioner disapproves
3.7the application, the commissioner must notify the applicant of the deficiencies and the
3.8applicant then has 20 business days to address the deficiencies to the commissioner's
3.9satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
3.10an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
3.11approval, must consider the applicant's:
3.12(1) capacity and infrastructure;
3.13(2) application criteria and process;
3.14(3) contracting process;
3.15(4) ongoing oversight and evaluation processes; and
3.16(5) renewal criteria and processes.
3.17(d) The affidavit application to be submitted to and evaluated by the commissioner
3.18must include at least be limited to only the following:
3.19(1) how chartering schools is a way for the organization to carry out its mission;
3.20(2) a description of the capacity of the organization to serve as an authorizer,
3.21including the personnel who will perform the authorizing duties, their qualifications, the
3.22amount of time they will be assigned to this responsibility, and the financial resources
3.23allocated by the organization to this responsibility;
3.24(3) a description of the application and review process the authorizer will use to make
3.25decisions regarding the granting of charters, which will include at least the following:
3.26(i) how the statutory purposes defined in subdivision 1 are addressed;
3.27(ii) the mission, goals, program model, and student performance expectations;
3.28(iii) an evaluation plan for the school that includes criteria for evaluating educational,
3.29organizational, and fiscal plans;
3.30(iv) the school's governance plan;
3.31(v) the financial management plan; and
3.32(vi) the administration and operations plan;
3.33(4) a description of the type of contract it will arrange with the schools it charters
3.34that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
3.35charter school for governing its educational program, controlling its funds, and making
3.36school management decisions;
4.1(5) the process to be used for providing ongoing oversight of the school consistent
4.2with the contract expectations specified in clause (4) that assures that the schools chartered
4.3are complying with both the provisions of applicable law and rules, and with the contract;
4.4(6) the process for making decisions regarding the renewal or termination of
4.5the school's charter based on evidence that demonstrates the academic, organizational,
4.6and financial competency of the school, including its success in increasing student
4.7achievement and meeting the goals of the charter school agreement; and
4.8(7) an assurance specifying that the organization is committed to serving as an
4.9authorizer for the full five-year term.
4.10A disapproved applicant under this paragraph may resubmit an application during a
4.11future application period.
4.12(e) The authorizer must participate in department-approved training.
4.13(f) An authorizer that chartered a school before August 1, 2009, must apply by
4.14June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an
4.15authorizer under this section. For purposes of this paragraph, an authorizer that fails to
4.16submit a timely application is ineligible to charter a school.
4.17(g) The commissioner shall review an authorizer's performance every five years in
4.18a manner and form determined by the commissioner and may review an authorizer's
4.19performance more frequently at the commissioner's own initiative or at the request of a
4.20charter school operator, charter school board member, or other interested party. The
4.21commissioner, after completing the review, shall transmit a report with findings to the
4.22authorizer. If, consistent with this section, the commissioner finds that an authorizer
4.23has not fulfilled the requirements of this section, the commissioner may subject the
4.24authorizer to corrective action, which may include terminating the contract with the
4.25charter school board of directors of a school it chartered. The commissioner must notify
4.26the authorizer in writing of any findings that may subject the authorizer to corrective
4.27action and the authorizer then has 15 business days to request an informal hearing before
4.28the commissioner takes corrective action.
4.29(h) The commissioner may at any time take corrective action against an authorizer,
4.30including terminating an authorizer's ability to charter a school for:
4.31(1) failing to demonstrate the criteria under paragraph (c) under which the
4.32commissioner approved the authorizer;
4.33(2) violating a term of the chartering contract between the authorizer and the charter
4.34school board of directors; or
4.35(3) unsatisfactory performance as an approved authorizer.
4.36EFFECTIVE DATE.This section is effective the day following final enactment.

5.1    Sec. 2. SINGLE-PURPOSE AUTHORIZER APPROVAL.
5.2An organization which submitted an application as a single-purpose authorizer as
5.3defined in Minnesota Statutes, section 124D.10, subdivision 3, paragraph (b), clause (5),
5.4to the commissioner of education in September 2010, and which met the criteria for
5.5approval but could not be approved because three single-purpose authorizers had already
5.6been approved, shall be approved by the commissioner without reapplying for approval on
5.7the effective date of this section.
5.8EFFECTIVE DATE.This section is effective the day following final enactment.
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