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HF 954

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2013 02:33pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to education finance; clarifying that a school district may lease a facility
to a charter school; amending Minnesota Statutes 2012, section 124D.10,
subdivision 23a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to
read:


Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party unless the lessor isnew text begin a school district,new text end a
nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b) For purposes of this section and section 124D.11:

(1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;

(2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;

(3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;

(4) "person" means an individual or entity of any kind; and

(5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.

(c) A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

(d) If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4
, clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end