SF 55

3rd Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 05/05/2011 03:22pm

1.1A bill for an act

1.2relating to education; modifying charter school provisions;amending Minnesota
1.3Statutes 2010, sections 120B.30, subdivision 3; 124D.10; 124D.11, subdivision 9.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2010, section 120B.30, subdivision 3, is amended to read:
1.6    Subd. 3. Reporting. The commissioner shall report test data publicly and to
1.7stakeholders, including the performance achievement levels developed from students'
1.8unweighted test scores in each tested subject and a listing of demographic factors that
1.9strongly correlate with student performance. The commissioner shall also report data
1.10that compares performance results among school sites, school districts, Minnesota and
1.11other states, and Minnesota and other nations. The commissioner shall disseminate to
1.12schools and school districts a more comprehensive report containing testing information
1.13that meets local needs for evaluating instruction and curriculum. The commissioner
1.14shall disseminate to charter school authorizers a more comprehensive report containing
1.15testing information that contains anonymized data where cell count data are sufficient to
1.16protect student identity and that meets the authorizer's needs in fulfilling its obligations
1.17under section 124D.10.

1.18    Sec. 2. Minnesota Statutes 2010, section 124D.10, is amended to read:
1.19124D.10 CHARTER SCHOOLS.
1.20    Subdivision 1. Purposes. (a) The purpose of this section is to:
1.21(1) improve pupil learning and student achievement;
1.22(2) increase learning opportunities for pupils;
1.23(3) encourage the use of different and innovative teaching methods;
2.1(4) measure learning outcomes and create different and innovative forms of
2.2measuring outcomes;
2.3(5) establish new forms of accountability for schools; and
2.4(6) create new professional opportunities for teachers, including the opportunity to
2.5be responsible for the learning program at the school site.
2.6(b) This section does not provide a means to keep open a school that otherwise would
2.7be closed or to reestablish a school that has been closed. Applicants in these circumstances
2.8bear the burden of proving that conversion to a charter school or establishment of a new
2.9charter school fulfills the purposes specified in this subdivision, independent of the
2.10school's closing a school board decides to close. However, a school board may endorse
2.11or authorize the establishing of a charter school to replace the school the board decided
2.12to close. Applicants seeking a charter under this circumstance must demonstrate to the
2.13authorizer that the charter sought is substantially different in purpose and program from
2.14the school the board closed and that the proposed charter satisfies the requirements of this
2.15subdivision. If the school board that closed the school authorizes the charter, it must
2.16document in its affidavit to the commissioner that the charter is substantially different in
2.17program and purpose from the school it closed.
2.18An authorizer shall not approve an application submitted by a charter school
2.19developer under subdivision 4, paragraph (a), if the application does not comply with this
2.20subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
2.21under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
2.22    Subd. 2. Applicability. This section applies only to charter schools formed and
2.23operated under this section.
2.24    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
2.25subdivision have the meanings given them.
2.26"Application" to receive approval as an authorizer means the proposal an eligible
2.27authorizer submits to the commissioner under paragraph (c) before that authorizer is able
2.28to submit any affidavit to charter to a school.
2.29"Application" under subdivision 4 means the charter school business plan a
2.30school developer submits to an authorizer for approval to establish a charter school that
2.31documents the school developer's mission statement, school purposes, program design,
2.32financial plan, governance and management structure, and background and experience,
2.33plus any other information the authorizer requests. The application also shall include a
2.34"statement of assurances" of legal compliance prescribed by the commissioner.
3.1"Affidavit" means a written statement the authorizer submits to the commissioner
3.2for approval to establish a charter school under subdivision 4 attesting to its review and
3.3approval process before chartering a school.
3.4"Affidavit" means the form an authorizer submits to the commissioner that is a
3.5precondition to a charter school organizing an affiliated nonprofit building corporation
3.6under subdivision 17a.
3.7(b) The following organizations may authorize one or more charter schools:
3.8(1) a school board; intermediate school district school board; education district
3.9organized under sections 123A.15 to 123A.19;
3.10(2) a charitable organization under section 501(c)(3) of the Internal Revenue
3.11Code of 1986, excluding a nonpublic sectarian or religious institution, without an
3.12affidavit approved by the commissioner before July 1, 2009, and any person other than a
3.13natural person that directly or indirectly, through one or more intermediaries, controls,
3.14is controlled by, or is under common control with the nonpublic sectarian or religious
3.15institution, and any other charitable organization under this clause that in the federal IRS
3.16Form 1023, Part IV, describes activities indicating a religious purpose, that:
3.17(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
3.18Foundations;
3.19(ii) is registered with the attorney general's office; and
3.20(iii) reports an end-of-year fund balance of at least $2,000,000; and
3.21(iv) is incorporated in the state of Minnesota and has been operating continuously
3.22for at least five years but does not operate a charter school;
3.23(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
3.24four-year degrees and is registered with the Minnesota Office of Higher Education under
3.25chapter 136A; community college, state university, or technical college governed by the
3.26Board of Trustees of the Minnesota State Colleges and Universities; or the University of
3.27Minnesota; or
3.28(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
3.29and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
3.30of 1986, may authorize one or more charter schools if the charter school has operated
3.31for at least three years under a different authorizer and if the nonprofit corporation has
3.32existed for at least 25 years.
3.33(5) no more than three single-purpose authorizers that are charitable, nonsectarian
3.34organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
3.35incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
3.36organizations interested in being approved as an authorizer under this paragraph must
4.1submit a proposal to the commissioner that includes the provisions of paragraph (c) and
4.2a five-year financial plan. Such authorizers shall consider and approve applications
4.3using the criteria provided in subdivision 4 and shall not limit the applications it solicits,
4.4considers, or approves to any single curriculum, learning program, or method.
4.5(c) An eligible authorizer under this subdivision must apply to the commissioner for
4.6approval as an authorizer before submitting any affidavit to the commissioner to charter
4.7a school. The application for approval as a charter school authorizer must demonstrate
4.8the applicant's ability to implement the procedures and satisfy the criteria for chartering a
4.9school under this section. The commissioner must approve or disapprove an application
4.10within 60 45 business days of the application deadline. If the commissioner disapproves
4.11the application, the commissioner must notify the applicant of the specific deficiencies
4.12in writing and the applicant then has 20 business days to address the deficiencies to the
4.13commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
4.14business days to make a final decision to approve or disapprove the application. Failing to
4.15address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
4.16be an authorizer. The commissioner, in establishing criteria for approval, must consider
4.17the applicant's:
4.18(1) capacity and infrastructure;
4.19(2) application criteria and process;
4.20(3) contracting process;
4.21(4) ongoing oversight and evaluation processes; and
4.22(5) renewal criteria and processes.
4.23(d) The affidavit to be submitted to and evaluated by An applicant must include in
4.24its application to the commissioner must include to be an approved authorizer at least
4.25the following:
4.26(1) how chartering schools is a way for the organization to carry out its mission;
4.27(2) a description of the capacity of the organization to serve as an authorizer,
4.28including the personnel who will perform the authorizing duties, their qualifications, the
4.29amount of time they will be assigned to this responsibility, and the financial resources
4.30allocated by the organization to this responsibility;
4.31(3) a description of the application and review process the authorizer will use to make
4.32decisions regarding the granting of charters, which will include at least the following:
4.33(i) how the statutory purposes defined in subdivision 1 are addressed;
4.34(ii) the mission, goals, program model, and student performance expectations;
4.35(iii) an evaluation plan for the school that includes criteria for evaluating educational,
4.36organizational, and fiscal plans;
5.1(iv) the school's governance plan;
5.2(v) the financial management plan; and
5.3(vi) the administration and operations plan;
5.4(4) a description of the type of contract it will arrange with the schools it charters
5.5that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
5.6charter school for governing its educational program, controlling its funds, and making
5.7school management decisions;
5.8(5) the process to be used for providing ongoing oversight of the school consistent
5.9with the contract expectations specified in clause (4) that assures that the schools chartered
5.10are complying with both the provisions of applicable law and rules, and with the contract;
5.11(6) a description of the criteria and process the authorizer will use to grant expanded
5.12applications under subdivision 4, paragraph (j);
5.13(7) the process for making decisions regarding the renewal or termination of
5.14the school's charter based on evidence that demonstrates the academic, organizational,
5.15and financial competency of the school, including its success in increasing student
5.16achievement and meeting the goals of the charter school agreement; and
5.17(7) (8) an assurance specifying that the organization is committed to serving as
5.18an authorizer for the full five-year term.
5.19(e) A disapproved applicant under this paragraph section may resubmit an
5.20application during a future application period.
5.21(f) If the governing board of an approved authorizer that has chartered multiple
5.22schools votes to withdraw as an approved authorizer for a reason unrelated to any
5.23cause under subdivision 23, the authorizer must notify all its chartered schools and the
5.24commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
5.25the next calendar year. The commissioner may approve the transfer of a charter school
5.26to a new authorizer under this paragraph after the new authorizer submits an affidavit to
5.27the commissioner.
5.28(e) (g) The authorizer must participate in department-approved training.
5.29(f) (h) An authorizer that chartered a school before August 1, 2009, must apply by
5.30June 30, 2011 September 7, 2011, to the commissioner for approval, under paragraph
5.31(c), to continue as an authorizer under this section. For purposes of this paragraph, an
5.32authorizer that fails to submit a timely application for commissioner approval is ineligible
5.33to charter authorize a school.
5.34(g) (i) The commissioner shall review an authorizer's performance every five years
5.35in a manner and form determined by the commissioner and may review an authorizer's
5.36performance more frequently at the commissioner's own initiative or at the request of a
6.1charter school operator, charter school board member, or other interested party. The
6.2commissioner, after completing the review, shall transmit a report with findings to the
6.3authorizer. If, consistent with this section, the commissioner finds that an authorizer has
6.4not fulfilled the requirements of this section, the commissioner may subject the authorizer
6.5to corrective action, which may include terminating the contract with the charter school
6.6board of directors of a school it chartered. The commissioner must notify the authorizer
6.7in writing of any findings that may subject the authorizer to corrective action and
6.8the authorizer then has 15 business days to request an informal hearing before the
6.9commissioner takes corrective action. If the commissioner terminates a contract between
6.10an authorizer and a charter school under this paragraph, the commissioner may assist the
6.11charter school in acquiring a new authorizer.
6.12(h) (j) The commissioner may at any time take corrective action against an
6.13authorizer, including terminating an authorizer's ability to charter a school for:
6.14(1) failing to demonstrate the criteria under paragraph (c) under which the
6.15commissioner approved the authorizer;
6.16(2) violating a term of the chartering contract between the authorizer and the charter
6.17school board of directors; or
6.18(3) unsatisfactory performance as an approved authorizer; or
6.19(4) any good cause shown that provides the commissioner a legally sufficient reason
6.20to take corrective action against an authorizer.
6.21    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
6.22a school developer, may charter a licensed teacher under section 122A.18, subdivision
6.231 , or a group of individuals that includes one or more licensed teachers under section
6.24122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the
6.25authorizer's affidavit under paragraph (b). The school must be organized and operated
6.26as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
6.27the provisions under the applicable chapter shall apply to the school except as provided
6.28in this section.
6.29Notwithstanding sections 465.717 and 465.719, a school district, subject to this
6.30section and section 124D.11, may create a corporation for the purpose of establishing a
6.31charter school.
6.32    (b) Before the operators may establish and operate a school, the authorizer must file
6.33an affidavit with the commissioner stating its intent to charter a school. An authorizer
6.34must file a separate affidavit for each school it intends to charter. The affidavit must
6.35state the terms and conditions under which the authorizer would charter a school and
6.36how the authorizer intends to oversee the fiscal and student performance of the charter
7.1school and to comply with the terms of the written contract between the authorizer
7.2and the charter school board of directors under subdivision 6. The commissioner must
7.3approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
7.4affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
7.5the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
7.6days to address the deficiencies. If the authorizer does not address deficiencies to the
7.7commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
7.8commissioner approval precludes an authorizer from chartering the school that is the
7.9subject of this affidavit.
7.10    (c) The authorizer may prevent an approved charter school from opening for
7.11operation if, among other grounds, the charter school violates this section or does not meet
7.12the ready-to-open standards that are part of the authorizer's oversight and evaluation
7.13process or are stipulated in the charter school contract.
7.14(d) The operators authorized to organize and operate a school, before entering into a
7.15contract or other agreement for professional or other services, goods, or facilities, must
7.16incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
7.17chapter 317A and must establish a board of directors composed of at least five members
7.18who are not related parties until a timely election for members of the ongoing charter
7.19school board of directors is held according to the school's articles and bylaws under
7.20paragraph (f). A charter school board of directors must be composed of at least five
7.21members who are not related parties. Staff members employed at the school, including
7.22teachers providing instruction under a contract with a cooperative, and all parents or legal
7.23guardians of children enrolled in the school are the voters eligible to elect the members
7.24of the school's board of directors. A charter school must notify eligible voters of the
7.25school board election dates at least 30 days before the election. Board of director meetings
7.26must comply with chapter 13D.
7.27    (e) Upon the request of an individual, the charter school must make available in
7.28a timely fashion the minutes of meetings of the board of directors, and of members
7.29and committees having any board-delegated authority; financial statements showing all
7.30operations and transactions affecting income, surplus, and deficit during the school's last
7.31annual accounting period; and a balance sheet summarizing assets and liabilities on the
7.32closing date of the accounting period. A charter school also must post on its official Web
7.33site information identifying its authorizer and indicate how to contact that authorizer and
7.34include that same information about its authorizer in other school materials that it makes
7.35available to the public.
8.1(f) Every charter school board member shall attend department-approved ongoing
8.2training throughout the member's term on board governance, including training on the
8.3board's role and responsibilities, employment policies and practices, and financial
8.4management. A board member who does not begin the required initial training within six
8.5months of after being seated and complete the required that training within 12 months of
8.6being seated on the board is ineligible to continue to serve as a board member.
8.7(g) The ongoing board must be elected before the school completes its third year
8.8of operation. Board elections must be held at a time during a time when the school is in
8.9session year but may not be conducted on days when the school is closed for holidays
8.10or vacations. The charter school board of directors shall be composed of at least five
8.11nonrelated members and include: (i) at least one licensed teacher employed and serving
8.12as a teacher at the school or a licensed teacher providing instruction under a contact
8.13contract between the charter school and a cooperative; (ii) the parent or legal guardian
8.14of a student enrolled in the charter school who is not an employee of the charter school;
8.15and (iii) an interested community member who is not employed by the charter school and
8.16does not have a child enrolled in the school. The board may be a teacher majority board
8.17composed of teachers described in this paragraph. The chief financial officer and the
8.18chief administrator are may only serve as ex-officio nonvoting board members and may
8.19not serve as a voting member of the board. Charter school employees shall not serve on
8.20the board unless item (i) applies. Contractors providing facilities, goods, or services to a
8.21charter school shall not serve on the board of directors of the charter school. Board bylaws
8.22shall outline the process and procedures for changing the board's governance model,
8.23consistent with chapter 317A. A board may change its governance model only:
8.24(1) by a majority vote of the board of directors and the licensed teachers employed
8.25by the school, including licensed teachers providing instruction under a contract between
8.26the school and a cooperative; and
8.27(2) with the authorizer's approval.
8.28Any change in board governance must conform with the board structure established
8.29under this paragraph.
8.30(h) The granting or renewal of a charter by an authorizer must not be conditioned
8.31upon the bargaining unit status of the employees of the school.
8.32(i) The granting or renewal of a charter school by an authorizer must not be
8.33contingent on the charter school being required to contract, lease, or purchase services
8.34from the authorizer. Any potential contract, lease, or purchase of service from an
8.35authorizer must be disclosed to the commissioner, accepted through an open bidding
8.36process, and be a separate contract from the charter contract. The school must document
9.1the open bidding process. An authorizer must not enter into a contract to provide
9.2management and financial services for a school that it authorizes, unless the school
9.3documents that it received at least two competitive bids.
9.4    (j) An authorizer may permit the board of directors of a charter school to expand
9.5the operation of the charter school to additional sites or to add additional grades at the
9.6school beyond those described in the authorizer's original affidavit as approved by
9.7the commissioner only after submitting a supplemental affidavit for approval to the
9.8commissioner in a form and manner prescribed by the commissioner. The supplemental
9.9affidavit must show document that:
9.10    (1) the expansion proposed by the charter school is supported by expansion plan
9.11demonstrates need and projected enrollment;
9.12(2) the charter school expansion is warranted, at a minimum, by longitudinal data
9.13demonstrating students' improved academic performance and growth on statewide
9.14assessments under chapter 120B;
9.15    (3) the charter school is fiscally financially sound and has the financial capacity the
9.16financing needed to implement the proposed expansion exists; and
9.17    (4) the authorizer finds that the charter school has the governance structure and
9.18management capacity to carry out its expansion.
9.19    (k) The commissioner shall have 30 business days to review and comment on the
9.20supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
9.21the supplemental affidavit and the authorizer then has 30 20 business days to address, to
9.22the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
9.23may not expand grades or add sites until the commissioner has approved the supplemental
9.24affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
9.25    Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
9.26member of the charter school board of directors if the individual, an immediate family
9.27member, or the individual's partner is an owner, employee or agent of, or a contractor
9.28with a for-profit or nonprofit entity or individual with whom the charter school contracts,
9.29directly or indirectly, for professional services, goods, or facilities. A violation of this
9.30prohibition renders a contract voidable at the option of the commissioner or the charter
9.31school board of directors. A member of a charter school board of directors who violates
9.32this prohibition is individually liable to the charter school for any damage caused by
9.33the violation.
9.34(b) No member of the board of directors, employee, officer, or agent of a charter
9.35school shall participate in selecting, awarding, or administering a contract if a conflict
9.36of interest exists. A conflict exists when:
10.1(1) the board member, employee, officer, or agent;
10.2(2) the immediate family of the board member, employee, officer, or agent;
10.3(3) the partner of the board member, employee, officer, or agent; or
10.4(4) an organization that employs, or is about to employ any individual in clauses
10.5(1) to (3),
10.6has a financial or other interest in the entity with which the charter school is contracting.
10.7A violation of this prohibition renders the contract void.
10.8(c) Any employee, agent, or board member of the authorizer who participates
10.9in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
10.10nonrenewal process or decision is ineligible to serve on the board of directors of a school
10.11chartered by that authorizer.
10.12(d) An individual may serve as a member of the board of directors if no conflict of
10.13interest under paragraph (a) exists.
10.14(e) The conflict of interest provisions under this subdivision do not apply to
10.15compensation paid to a teacher employed by the charter school who also serves as a
10.16member of the board of directors.
10.17(f) The conflict of interest provisions under this subdivision do not apply to a teacher
10.18who provides services to a charter school through a cooperative formed under chapter
10.19308A when the teacher also serves on the charter school board of directors.
10.20    Subd. 5. Conversion of existing schools. A board of an independent or special
10.21school district may convert one or more of its existing schools to charter schools under
10.22this section if 60 percent of the full-time teachers at the school sign a petition seeking
10.23conversion. The conversion must occur at the beginning of an academic year.
10.24    Subd. 6. Charter contract. The authorization for a charter school must be in the
10.25form of a written contract signed by the authorizer and the board of directors of the charter
10.26school. The contract must be completed within 45 business days of the commissioner's
10.27approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
10.28copy of the signed charter contract within ten business days of its execution. The contract
10.29for a charter school must be in writing and contain at least the following:
10.30(1) a declaration of the purposes in subdivision 1 that the school intends to carry out
10.31and how the school will report its implementation of those purposes;
10.32(2) a description of the school program and the specific academic and nonacademic
10.33outcomes that pupils must achieve;
10.34(3) a statement of admission policies and procedures;
10.35(4) a governance, management, and administration plan for the school;
11.1(5) signed agreements from charter school board members to comply with all
11.2federal and state laws governing organizational, programmatic, and financial requirements
11.3applicable to charter schools;
11.4(6) the criteria, processes, and procedures that the authorizer will use for ongoing
11.5oversight of operational, financial, and academic performance;
11.6(7) the performance evaluation that is a prerequisite for reviewing a charter contract
11.7under subdivision 15;
11.8(8) types and amounts of insurance liability coverage to be obtained by the charter
11.9school;
11.10(9) a provision to indemnify and hold harmless the commissioner and the authorizer,
11.11and their officers, agents, and employees from any suit, claim, or liability arising under
11.12the contract or from the operation of the charter school;
11.13(10) the term of the contract, which may be up to three years for an initial contract
11.14plus an additional preoperational planning year, and up to five years for a renewed contract
11.15if warranted by the school's academic, financial, and operational performance;
11.16(10) (11) how the board of directors or the operators of the charter school will
11.17provide special instruction and services for children with a disability under sections
11.18125A.03 to 125A.24, and 125A.65, a description of the financial parameters within
11.19which the charter school will operate to provide the special instruction and services to
11.20children with a disability;
11.21(11) (12) the process and criteria the authorizer intends to use to monitor and
11.22evaluate the fiscal and student performance of the charter school, consistent with
11.23subdivision 15; and
11.24(12) (13) the plan for an orderly closing of the school under chapter 308A or 317A,
11.25if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
11.26the contract, and that includes establishing the responsibilities of the school board of
11.27directors and the authorizer and notifying the commissioner, authorizer, school district in
11.28which the charter school is located, and parents of enrolled students about the closure,
11.29the transfer of student records to students' resident districts, and procedures for closing
11.30financial operations.
11.31    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
11.32commissioner and its authorizer by December 31 each year.
11.33(b) The charter school, with the assistance of the auditor conducting the audit, must
11.34include with the report a copy of all charter school agreements for corporate management
11.35services. If the entity that provides the professional services to the charter school is
11.36exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
12.1must file with the commissioner by February 15 a copy of the annual return required under
12.2section 6033 of the Internal Revenue Code of 1986.
12.3(c) If the commissioner receives an audit report indicating finds that a material
12.4weakness exists in the financial reporting systems of a charter school, the charter school
12.5must submit a written report to the commissioner explaining how the material weakness
12.6will be resolved. An entity, as a condition of providing financial services to a charter
12.7school, must agree to make available information about a charter school's financial audit
12.8to the commissioner and authorizer upon request.
12.9    Subd. 7. Public status; exemption from statutes and rules. A charter school is
12.10a public school and is part of the state's system of public education. A charter school is
12.11exempt from all statutes and rules applicable to a school, school board, or school district
12.12unless a statute or rule is made specifically applicable to a charter school or is included
12.13in this section.
12.14    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
12.15federal, state, and local health and safety requirements applicable to school districts.
12.16(b) A school must comply with statewide accountability requirements governing
12.17standards and assessments in chapter 120B.
12.18(c) A school authorized by a school board may be located in any district, unless the
12.19school board of the district of the proposed location disapproves by written resolution.
12.20(d) A charter school must be nonsectarian in its programs, admission policies,
12.21employment practices, and all other operations. An authorizer may not authorize a charter
12.22school or program that is affiliated with a nonpublic sectarian school or a religious
12.23institution. A charter school student must be released for religious instruction, consistent
12.24with section 120A.22, subdivision 12, clause (3).
12.25(e) Charter schools must not be used as a method of providing education or
12.26generating revenue for students who are being home-schooled.
12.27(f) The primary focus of a charter school must be to provide a comprehensive
12.28program of instruction for at least one grade or age group from five through 18 years
12.29of age. Instruction may be provided to people younger than five years and older than
12.3018 years of age.
12.31(g) A charter school may not charge tuition.
12.32(h) A charter school is subject to and must comply with chapter 363A and section
12.33121A.04 .
12.34(i) A charter school is subject to and must comply with the Pupil Fair Dismissal
12.35Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
12.36123B.34 to 123B.39.
13.1(j) A charter school is subject to the same financial audits, audit procedures, and
13.2audit requirements as a district. Audits must be conducted in compliance with generally
13.3accepted governmental auditing standards, the federal Single Audit Act, if applicable,
13.4and section 6.65. A charter school is subject to and must comply with sections 15.054;
13.5118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and
13.6471.425 . The audit must comply with the requirements of sections 123B.75 to 123B.83,
13.7except to the extent deviations are necessary because of the program at the school.
13.8Deviations must be approved by the commissioner and authorizer. The Department of
13.9Education, state auditor, legislative auditor, or authorizer may conduct financial, program,
13.10or compliance audits. A charter school determined to be in statutory operating debt under
13.11sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
13.12(k) A charter school is a district for the purposes of tort liability under chapter 466.
13.13(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
13.14subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
13.15(m) A charter school is subject to the Pledge of Allegiance requirement under
13.16section 121A.11, subdivision 3.
13.17(n) A charter school offering online courses or programs must comply with section
13.18124D.095 .
13.19(o) A charter school and charter school board of directors are subject to chapter 181.
13.20(p) A charter school must comply with section 120A.22, subdivision 7, governing
13.21the transfer of students' educational records and sections 138.163 and 138.17 governing
13.22the management of local records.
13.23(q) A charter school that provides early childhood health and developmental
13.24screening must comply with sections 121A.16 to 121A.19.
13.25    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
13.26under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
13.27under this section.
13.28    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
13.29school's state aid by an amount not to exceed 60 percent of the charter school's basic
13.30revenue for the period of time that a violation of law occurs.
13.31    Subd. 9. Admission requirements. A charter school may limit admission to:
13.32(1) pupils within an age group or grade level;
13.33(2) pupils who are eligible to participate in the graduation incentives program under
13.34section 124D.68; or
13.35(3) residents of a specific geographic area in which the school is located when the
13.36majority of students served by the school are members of underserved populations.
14.1A charter school shall enroll an eligible pupil who submits a timely application,
14.2unless the number of applications exceeds the capacity of a program, class, grade level, or
14.3building. In this case, pupils must be accepted by lot. The charter school must develop
14.4and publish a lottery policy and process that it must use when accepting pupils by lot.
14.5A charter school shall give enrollment preference for enrollment to a sibling of an
14.6enrolled pupil and to a foster child of that pupil's parents and may give preference for
14.7enrolling children of the school's teachers before accepting other pupils by lot.
14.8A charter school may not limit admission to pupils on the basis of intellectual ability,
14.9measures of achievement or aptitude, or athletic ability and may not establish any criteria
14.10or requirements for admission that are inconsistent with this subdivision.
14.11The charter school shall not distribute any services or goods of value to students,
14.12parents, or guardians as an inducement, term, or condition of enrolling a student in a
14.13charter school.
14.14    Subd. 10. Pupil performance. A charter school must design its programs to at
14.15least meet the outcomes adopted by the commissioner for public school students. In
14.16the absence of the commissioner's requirements, the school must meet the outcomes
14.17contained in the contract with the authorizer. The achievement levels of the outcomes
14.18contained in the contract may exceed the achievement levels of any outcomes adopted by
14.19the commissioner for public school students.
14.20    Subd. 11. Employment and other operating matters. (a) A charter school must
14.21employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
14.22who hold valid licenses to perform the particular service for which they are employed in
14.23the school. The charter school's state aid may be reduced under section 127A.43 if the
14.24school employs a teacher who is not appropriately licensed or approved by the board of
14.25teaching. The school may employ necessary employees who are not required to hold
14.26teaching licenses to perform duties other than teaching and may contract for other services.
14.27The school may discharge teachers and nonlicensed employees. The charter school board
14.28is subject to section 181.932. When offering employment to a prospective employee, a
14.29charter school must give that employee a written description of the terms and conditions
14.30of employment and the school's personnel policies.
14.31(b) A person, without holding a valid administrator's license, may perform
14.32administrative, supervisory, or instructional leadership duties. The board of directors shall
14.33establish qualifications for persons that hold administrative, supervisory, or instructional
14.34leadership roles. The qualifications shall include at least the following areas: instruction
14.35and assessment; human resource and personnel management; financial management;
14.36legal and compliance management; effective communication; and board, authorizer, and
15.1community relationships. The board of directors shall use those qualifications as the basis
15.2for job descriptions, hiring, and performance evaluations of those who hold administrative,
15.3supervisory, or instructional leadership roles. The board of directors and an individual
15.4who does not hold a valid administrative license and who serves in an administrative,
15.5supervisory, or instructional leadership position shall develop a professional development
15.6plan. Documentation of the implementation of the professional development plan of these
15.7persons shall be included in the school's annual report.
15.8(c) The board of directors also shall decide matters related to the operation of the
15.9school, including budgeting, curriculum and operating procedures.
15.10    Subd. 12. Pupils with a disability. A charter school must comply with sections
15.11125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
15.12with a disability as though it were a district.
15.13    Subd. 13. Length of school year. A charter school must provide instruction
15.14each year for at least the number of days required by section 120A.41. It may provide
15.15instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
15.16    Subd. 14. Annual public reports. A charter school must publish an annual report
15.17approved by the board of directors. The annual report must at least include information
15.18on school enrollment, student attrition, governance and management, staffing, finances,
15.19academic performance, operational performance, innovative practices and implementation,
15.20and future plans. A charter school must distribute the annual report by publication, mail,
15.21or electronic means to the commissioner, authorizer, school employees, and parents and
15.22legal guardians of students enrolled in the charter school and must also post the report on
15.23the charter school's official Web site. The reports are public data under chapter 13.
15.24    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
15.25evaluation of the school's performance before the authorizer renews the charter contract.
15.26The department must review and comment on the authorizer's evaluation process at the
15.27time the authorizer submits its application for approval and each time the authorizer
15.28undergoes its five-year review under subdivision 3, paragraph (e).
15.29(b) An authorizer shall monitor and evaluate the fiscal, operational, and student
15.30performance of the school, and may for this purpose annually assess a charter school
15.31a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
15.32charter school contract.
15.33(c) The fee that each charter school pays to an authorizer each year is the greater of:
15.34(1) the basic formula allowance for that year; or
15.35(2) the lesser of:
15.36(i) the maximum fee factor times the basic formula allowance for that year; or
16.1(ii) the fee factor times the basic formula allowance for that year times the charter
16.2school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
16.3year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
16.4and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
16.53.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
16.6(d) The department and any charter school it charters must not assess or pay a fee
16.7under paragraphs (b) and (c).
16.8(e) For the preoperational planning period, the authorizer may assess a charter school
16.9a fee equal to the basic formula allowance.
16.10(f) By September 30 of each year, an authorizer shall submit to the commissioner
16.11a statement of expenditures related to chartering activities during the previous school
16.12year ending June 30. A copy of the statement shall be given to all schools chartered by
16.13the authorizer.
16.14    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
16.15by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
16.16operation must notify the district in which the school is located and the Department of
16.17Education if it will provide its own transportation or use the transportation services of the
16.18district in which it is located for the fiscal year.
16.19(b) If a charter school elects to provide transportation for pupils, the transportation
16.20must be provided by the charter school within the district in which the charter school is
16.21located. The state must pay transportation aid to the charter school according to section
16.22124D.11, subdivision 2 .
16.23For pupils who reside outside the district in which the charter school is located, the
16.24charter school is not required to provide or pay for transportation between the pupil's
16.25residence and the border of the district in which the charter school is located. A parent
16.26may be reimbursed by the charter school for costs of transportation from the pupil's
16.27residence to the border of the district in which the charter school is located if the pupil is
16.28from a family whose income is at or below the poverty level, as determined by the federal
16.29government. The reimbursement may not exceed the pupil's actual cost of transportation
16.30or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
16.31more than 250 miles per week.
16.32At the time a pupil enrolls in a charter school, the charter school must provide the
16.33parent or guardian with information regarding the transportation.
16.34(c) If a charter school does not elect to provide transportation, transportation for
16.35pupils enrolled at the school must be provided by the district in which the school is
16.36located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
17.1pupil residing in the same district in which the charter school is located. Transportation
17.2may be provided by the district in which the school is located, according to sections
17.3123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
17.4district. If the district provides the transportation, the scheduling of routes, manner and
17.5method of transportation, control and discipline of the pupils, and any other matter relating
17.6to the transportation of pupils under this paragraph shall be within the sole discretion,
17.7control, and management of the district.
17.8    Subd. 17. Leased space. A charter school may lease space from an independent
17.9or special school board eligible to be an authorizer, other public organization, private,
17.10nonprofit nonsectarian organization, private property owner, or a sectarian organization
17.11if the leased space is constructed as a school facility. The department must review and
17.12approve or disapprove leases in a timely manner.
17.13    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
17.14may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
17.15existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
17.16must submit an affidavit to the commissioner for approval in the form and manner the
17.17commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
17.18(b) An affiliated nonprofit building corporation under this subdivision must:
17.19(1) be incorporated under section 317A and comply with applicable Internal
17.20Revenue Service regulations;
17.21(2) submit to the commissioner each fiscal year a list of current board members
17.22and a copy of its annual audit; and
17.23(3) comply with government data practices law under chapter 13.
17.24An affiliated nonprofit building corporation must not serve as the leasing agent for
17.25property or facilities it does not own. A charter school that leases a facility from an
17.26affiliated nonprofit building corporation that does not own the leased facility is ineligible
17.27to receive charter school lease aid. The state is immune from liability resulting from a
17.28contract between a charter school and an affiliated nonprofit building corporation.
17.29(c) A charter school may organize an affiliated nonprofit building corporation to
17.30renovate or purchase an existing facility to serve as a school if the charter school:
17.31(1) has been operating for at least five consecutive school years and the school's
17.32charter has been renewed for a five-year term;
17.33(2) has had a net positive unreserved general fund balance as of June 30 in the
17.34preceding five fiscal years;
17.35(3) has a long-range strategic and financial plan;
17.36(4) completes a feasibility study of available buildings; and
18.1(5) documents sustainable enrollment projections and the need to use an affiliated
18.2building corporation to renovate or purchase an existing facility to serve as a school.
18.3(d) A charter school may organize an affiliated nonprofit building corporation to
18.4construct a new school facility if the charter school:
18.5(1) demonstrates the lack of facilities available to serve as a school;
18.6(2) has been operating for at least eight consecutive school years;
18.7(3) has had a net positive unreserved general fund balance as of June 30 in the
18.8preceding eight fiscal years;
18.9(4) completes a feasibility study of facility options;
18.10(5) has a long-range strategic and financial plan that includes sustainable enrollment
18.11projections and demonstrates the need for constructing a new school facility; and
18.12(6) has a positive review and comment from the commissioner under section
18.13123B.71 .
18.14    Subd. 19. Disseminate information. (a) The authorizer, the operators, and the
18.15department must disseminate information to the public on how to form and operate
18.16a charter school. Charter schools must disseminate information about how to use
18.17the offerings of a charter school. Targeted groups include low-income families and
18.18communities, students of color, and students who are at risk of academic failure.
18.19(b) Authorizers, operators, and the department also may disseminate information
18.20about the successful best practices in teaching and learning demonstrated by charter
18.21schools.
18.22    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
18.23makes a written request for an extended leave of absence to teach at a charter school,
18.24the district must grant the leave. The district must grant a leave not to exceed a total of
18.25five years. Any request to extend the leave shall be granted only at the discretion of the
18.26school board. The district may require that the request for a leave or extension of leave
18.27be made before February 1 in the school year preceding the school year in which the
18.28teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
18.29scheduled to terminate. Except as otherwise provided in this subdivision and except for
18.30section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but
18.31not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
18.32During a leave, the teacher may continue to aggregate benefits and credits in the
18.33Teachers' Retirement Association account under chapters 354 and 354A, consistent with
18.34subdivision 22.
18.35    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
18.36school may, if otherwise eligible, organize under chapter 179A and comply with its
19.1provisions. The board of directors of a charter school is a public employer, for the
19.2purposes of chapter 179A, upon formation of one or more bargaining units at the school.
19.3Bargaining units at the school must be separate from any other units within an authorizing
19.4district, except that bargaining units may remain part of the appropriate unit within an
19.5authorizing district, if the employees of the school, the board of directors of the school,
19.6the exclusive representative of the appropriate unit in the authorizing district, and the
19.7board of the authorizing district agree to include the employees in the appropriate unit of
19.8the authorizing district.
19.9    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
19.10school must be public school teachers for the purposes of chapters 354 and 354a.
19.11(b) Except for teachers under paragraph (a), employees in a charter school must be
19.12public employees for the purposes of chapter 353.
19.13    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
19.14The duration of the contract with an authorizer must be for the term contained in the
19.15contract according to subdivision 6. The authorizer may or may not renew a contract at
19.16the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
19.17terminate a contract during the term of the contract for any ground listed in paragraph (b).
19.18At least 60 business days before not renewing or terminating a contract, the authorizer
19.19shall notify the board of directors of the charter school of the proposed action in writing.
19.20The notice shall state the grounds for the proposed action in reasonable detail and that the
19.21charter school's board of directors may request in writing an informal hearing before the
19.22authorizer within 15 business days of receiving notice of nonrenewal or termination of
19.23the contract. Failure by the board of directors to make a written request for a an informal
19.24hearing within the 15-business-day period shall be treated as acquiescence to the proposed
19.25action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
19.26business days' notice to the charter school's board of directors of the hearing date. The
19.27authorizer shall conduct an informal hearing before taking final action. The authorizer
19.28shall take final action to renew or not renew a contract no later than 20 business days
19.29before the proposed date for terminating the contract or the end date of the contract.
19.30(b) A contract may be terminated or not renewed upon any of the following grounds:
19.31(1) failure to meet the requirements for pupil performance contained in the contract;
19.32(2) failure to meet generally accepted standards of fiscal management;
19.33(3) violations of law; or
19.34(4) other good cause shown.
19.35If a contract is terminated or not renewed under this paragraph, the school must be
19.36dissolved according to the applicable provisions of chapter 308A or 317A.
20.1(c) If the authorizer and the charter school board of directors mutually agree to
20.2terminate or not renew the contract, a change in transfer of authorizers is allowed if the
20.3commissioner approves the transfer to a different eligible authorizer to authorize the
20.4charter school. Both parties must jointly submit their intent in writing to the commissioner
20.5to mutually terminate the contract. The authorizer that is a party to the existing contract
20.6at least must inform the approved different eligible proposed authorizer about the fiscal
20.7and operational status and student performance of the school. Before the commissioner
20.8determines whether to approve a transfer of authorizer, the commissioner first proposed
20.9authorizer must determine whether the charter school and prospective new authorizer can
20.10identify and effectively resolve those circumstances causing the previous authorizer and
20.11the charter school to mutually agree to terminate the contract identify and mitigate any
20.12outstanding issues in the proposed charter contract that were unresolved in the previous
20.13charter contract. If no transfer of authorizer is approved, the school must be dissolved
20.14according to applicable law and the terms of the contract.
20.15(d) The commissioner, after providing reasonable notice to the board of directors of
20.16a charter school and the existing authorizer, and after providing an opportunity for a public
20.17hearing, may terminate the existing contract between the authorizer and the charter school
20.18board if the charter school has a history of:
20.19(1) failure failed to meet pupil performance requirements contained in the contract
20.20consistent with state law;
20.21(2) displayed financial mismanagement or failure to meet generally accepted
20.22standards of fiscal management; or
20.23(3) repeated or major committed multiple violations of the law; or
20.24(4) committed a major violation of the law, including a violation of the Minnesota or
20.25United States Constitution, among other major violations.
20.26    (e) If the commissioner terminates a charter school contract under subdivision 3,
20.27paragraph (g), the commissioner shall provide the charter school with information about
20.28other eligible authorizers.
20.29    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
20.30entering a lease of real property with a related party unless the lessor is a nonprofit
20.31corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
20.32reasonable under section 124D.11, subdivision 4, clause (1).
20.33    (b) For purposes of this section and section 124D.11:
20.34(1) "related party" means an affiliate or immediate relative of the other party in
20.35question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
21.1(2) "affiliate" means a person that directly or indirectly, through one or more
21.2intermediaries, controls, is controlled by, or is under common control with another person;
21.3(3) "immediate family" means an individual whose relationship by blood, marriage,
21.4adoption, or partnering is no more remote than first cousin;
21.5(4) "person" means an individual or entity of any kind; and
21.6(5) "control" means the ability to affect the management, operations, or policy
21.7actions or decisions of a person, whether through ownership of voting securities, by
21.8contract, or otherwise.
21.9(c) A lease of real property to be used for a charter school, not excluded in paragraph
21.10(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
21.11section 124D.10, subdivision 23a."
21.12    (d) If a charter school enters into as lessee a lease with a related party and the
21.13charter school subsequently closes, the commissioner has the right to recover from the
21.14lessor any lease payments in excess of those that are reasonable under section 124D.11,
21.15subdivision 4 , clause (1).
21.16    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
21.17contract. If a contract is not renewed or is terminated according to subdivision 23, a
21.18pupil who attended the school, siblings of the pupil, or another pupil who resides in the
21.19same place as the pupil may enroll in the resident district or may submit an application
21.20to a nonresident district according to section 124D.03 at any time. Applications and
21.21notices required by section 124D.03 must be processed and provided in a prompt manner.
21.22The application and notice deadlines in section 124D.03 do not apply under these
21.23circumstances. The closed charter school must transfer the student's educational records
21.24within ten business days of closure to the student's school district of residence where the
21.25records must be retained or transferred under section 120A.22, subdivision 7.
21.26    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
21.27school may sue and be sued.
21.28(b) The board may not levy taxes or issue bonds.
21.29(c) The commissioner, an authorizer, members of the board of an authorizer in
21.30their official capacity, and employees of an authorizer are immune from civil or criminal
21.31liability with respect to all activities related to a charter school they approve or authorize.
21.32The charter school shall assume full liability for its activities and indemnify and hold
21.33harmless the commissioner and the authorizer, and their officers, agents, and employees
21.34from any suit, claim, or liability arising under the contract or from the operation of the
21.35charter school. The board of directors shall obtain at least the amount of and types of
21.36insurance up to the applicable tort liability limits under chapter 466. The charter school
22.1board must submit a copy of the insurance policy to its authorizer and the commissioner
22.2before starting operations. The charter school board must submit changes in its insurance
22.3carrier or policy to notify its authorizer and the commissioner of a change in insurance
22.4carrier or policy amount limits within 20 business days of the change. A charter school
22.5is not required to indemnify or hold harmless a state employee if the state would not be
22.6required to indemnify and hold the employee harmless under section 3.736, subdivision 9.

22.7    Sec. 3. Minnesota Statutes 2010, section 124D.11, subdivision 9, is amended to read:
22.8    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section 127A.45,
22.9subdivision 3 , aid payments for the current fiscal year to a charter school shall be of an
22.10equal amount on each of the 24 payment dates.
22.11(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
22.12operation on or prior to June 30 of a school year, for the payment periods occurring after
22.13the school ceases serving students, the commissioner shall withhold the estimated state aid
22.14owed the school. The charter school board of directors and authorizer must submit to the
22.15commissioner a closure plan under chapter 308A or 317A, and financial information about
22.16the school's liabilities and assets. After receiving the closure plan, financial information,
22.17an audit of pupil counts, documentation of lease expenditures, and monitoring of special
22.18education expenditures, the commissioner may release cash withheld and may continue
22.19regular payments up to the current year payment percentages if further amounts are
22.20owed. If, based on audits and monitoring, the school received state aid in excess of the
22.21amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
22.22overpayment. For a charter school ceasing operations prior to, or at the end of, a school
22.23year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
22.24be made after receiving the closure plan, audit of pupil counts, monitoring of special
22.25education expenditures, documentation of lease expenditures, and school submission of
22.26Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
22.27final year of operation. Final payment may be made upon receipt of audited financial
22.28statements under section 123B.77, subdivision 3.
22.29(c) If a charter school fails to comply with the commissioner's directive to return,
22.30for cause, federal or state funds administered by the department, the commissioner may
22.31withhold an amount of state aid sufficient to satisfy the directive.
22.32(d) If, within the timeline under section 471.425, a charter school fails to pay the state
22.33of Minnesota, a school district, intermediate school district, or service cooperative after
22.34receiving an undisputed invoice for goods and services, the commissioner may withhold
22.35an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
23.1aid to the interested state agency, school district, intermediate school district, or service
23.2cooperative. An interested state agency, school district, intermediate school district, or
23.3education cooperative shall notify the commissioner when a charter school fails to pay an
23.4undisputed invoice within 75 business days of when it received the original invoice.
23.5(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
23.6of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
23.7of student attendance for that school year.
23.8(f) In order to receive state aid payments under this subdivision, a charter school in
23.9its first three years of operation must submit a school calendar in the form and manner
23.10requested by the department and a quarterly report to the Department of Education. The
23.11report must list each student by grade, show the student's start and end dates, if any,
23.12with the charter school, and for any student participating in a learning year program,
23.13the report must list the hours and times of learning year activities. The report must be
23.14submitted not more than two weeks after the end of the calendar quarter to the department.
23.15The department must develop a Web-based reporting form for charter schools to use
23.16when submitting enrollment reports. A charter school in its fourth and subsequent year of
23.17operation must submit a school calendar and enrollment information to the department in
23.18the form and manner requested by the department.
23.19(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
23.20school and satisfaction of creditors, cash and investment balances remaining shall be
23.21returned to the state.
23.22(h) A charter school must have a valid, signed contract under section 124D.10,
23.23subdivision 6, on file at the department at least 15 days before the date the department
23.24makes the first state aid payment for the fiscal year.

23.25    Sec. 4. TRANSITIONAL AUTHORIZER.
23.26(a) Notwithstanding other law to the contrary, an authorizer that chartered a school
23.27before August 1, 2009, and is ineligible to authorize a charter school under Minnesota
23.28Statutes, section 124D.10, subdivision 3, paragraph (c) or (f), after September 7, 2011,
23.29because:
23.30(1) the education commissioner did not approve the authorizer's application;
23.31(2) the authorizer did not apply to the commissioner for approval as an authorizer; or
23.32(3) the authorizer did not submit a timely application for approval as an authorizer
23.33may continue to authorize that charter school until June 30, 2012.
23.34(b) A charter school operating under a contract with an authorizer described in
23.35paragraph (a) after September 7, 2011, must enter into another charter school contract with
24.1an eligible approved authorizer by June 30, 2012, or cease operating. As a condition of
24.2continuing to authorize a charter school under this section, an authorizer under paragraph
24.3(a) must direct the charter school to notify the parents of students enrolled in the charter
24.4school and the school district in which the charter school is located within 14 days after the
24.5effective date of this section that the authorizer is currently able to continue to authorize
24.6the charter school only until June 30, 2012. A charter school that continues to operate
24.7after June 30, 2012, with an authorizer under paragraph (a) commits a major violation of
24.8law under Minnesota Statutes, section 124D.10, subdivision 23, paragraph (d), clause (4).
24.9EFFECTIVE DATE.This section is effective the day following final enactment.