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HF 3204

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 06/08/2016 12:20pm

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

Current Version - 1st Engrossment

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A bill for an act
relating to education; reformatting, making technical, grammatical corrections,
and correcting erroneous, ambiguous, and omitted text in certain charter school
provisions; amending Minnesota Statutes 2015 Supplement, sections 124E.01;
124E.02; 124E.03; 124E.05; 124E.06; 124E.07; 124E.08; 124E.10; 124E.12;
124E.13; 124E.15; 124E.16; 124E.17; 124E.22; 124E.24; 124E.25; 124E.26.

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

Section 1.

Minnesota Statutes 2015 Supplement, section 124E.01, is amended to read:


124E.01 PURPOSE AND APPLICABILITY.

Subdivision 1.

Purposes.

The primary purpose of deleted text begin this chapterdeleted text end new text begin charter schoolsnew text end is to
improve all pupil learning and all student achievement. Additional purposes include to:

(1) increase learning opportunities for all pupils;

(2) encourage the use of different and innovative teaching methods;

(3) measure learning outcomes and create different and innovative forms of
measuring outcomes;

(4) establish new forms of accountability for schools; or

(5) create new professional opportunities for teachers, including the opportunity to
be responsible for the learning program at the school site.

Subd. 2.

Applicability.

This chapter applies only to charter schools formed and
operated under this chapter.new text begin Other statutes and rules that specifically apply to charter
schools also govern charter schools.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 124E.02, is amended to read:


124E.02 DEFINITIONS.

(a) For purposes of this chapter, the terms defined in this deleted text begin paragraphdeleted text end new text begin section new text end have
the meanings given them.

deleted text begin "Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under section 124E.05 before that authorizer is
able to submit any affidavit to charter to a school.
deleted text end

deleted text begin "Application" under section 124E.06 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.
deleted text end

new text begin (b) new text end "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under section 124E.06new text begin , subdivision 4,new text end attesting to
its review and approval process before chartering a school.

deleted text begin (b) For purposes of this chapter:
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (2)deleted text end new text begin (c)new text end "Affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another persondeleted text begin ;deleted text end new text begin .
new text end

new text begin (d) "Control" means the ability to affect the management, operations, or policy actions
or decisions of a person, whether by owning voting securities, by contract, or otherwise.
new text end

deleted text begin (3)deleted text end new text begin (e)new text end "Immediate family" means an individual whose relationship by blood,
marriage, adoption, or deleted text begin partneringdeleted text end new text begin partnershipnew text end is no more remote than first cousindeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (4)deleted text end new text begin (f)new text end "Person" means an individual or entity of any kinddeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (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.
deleted text end

new text begin (g) "Related party" means an affiliate or immediate relative of the other interested
party, an affiliate of an immediate relative who is the other interested party, or an
immediate relative of an affiliate who is the other interested party.
new text end

new text begin (h) For purposes of this chapter, the terms defined in section 120A.05 have the
same meanings.
new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 124E.03, is amended to read:


124E.03 APPLICABLE LAW.

Subdivision 1.

Public status; exemption from statutes and rules.

A charter school
is a public school and is part of the state's system of public education. A charter school is
exempt from all statutes and rules applicable to a school, school board, or school district
unless a statute or rule is made specifically applicable to a charter school or is included
in this chapter.

Subd. 2.

deleted text begin Generaldeleted text end new text begin Certainnew text end federal, state, and local requirements.

(a) A charter
school shall meet all federal, state, and local health and safety requirements applicable
to school districts.

(b) A school must comply with statewide accountability requirements governing
standards and assessments in chapter 120B.

(c) A charter school deleted text begin is subject to anddeleted text end must comply with the Minnesota Public School
Fee Law, sections 123B.34 to 123B.39.

(d) A charter school is a district for the purposes of tort liability under chapter 466.

(e) A charter school deleted text begin is subject todeleted text end new text begin must comply withnew text end the Pledge of Allegiance
requirement under section 121A.11, subdivision 3.

(f) A charter school and charter school board of directors deleted text begin are subject todeleted text end new text begin must comply
with
new text end chapter 181 new text begin governing requirements for employmentnew text end .

(g) A charter school deleted text begin is subject to anddeleted text end must comply with continuing truant notification
under section 260A.03.

(h) A charter school must develop and implement a teacher evaluation and peer
review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to
(13). The teacher evaluation process in this paragraph does not create any additional
employment rights for teachers.

(i) A charter school must adopt a policy, plan, budget, and process, consistent with
section 120B.11, to review curriculum, instruction, and student achievement and strive
for the world's best workforce.

Subd. 3.

Pupils with a disability.

A charter school must comply with sections
125A.02, 125A.03 to 125A.24, 125A.65, and 125A.75 and rules relating to the education
of pupils with a disability as though it were a district. A charter school enrolling
prekindergarten pupils with a disability under section 124E.11, paragraph (h), must
comply with sections 125A.259 to 125A.48 and rules relating to the Interagency Early
Intervention System as though it were a school district.

Subd. 4.

Students' rights and related law.

(a) A charter school deleted text begin studentdeleted text end must
deleted text begin be releaseddeleted text end new text begin release a studentnew text end for religious instruction, consistent with section 120A.22,
subdivision 12
, clause (3).

(b) A charter school deleted text begin is subject to anddeleted text end must comply with chapter 363A new text begin governing the
Minnesota Human Rights Act
new text end and section 121A.04new text begin governing student athletics and sex
discrimination in schools
new text end .

(c) A charter school must comply with section 121A.031 governing policies on
deleted text begin prohibited conductdeleted text end new text begin bullyingnew text end .

Subd. 5.

Recordsdeleted text begin , meetings,deleted text end and data requirements.

(a) A charter school must
comply with deleted text begin chaptersdeleted text end new text begin chapternew text end 13 deleted text begin and 13Ddeleted text end new text begin governing government datanew text end ; and sections
deleted text begin 120A.22, subdivision 7;deleted text end 121A.75deleted text begin ;deleted text end new text begin governing access to juvenile justice records,new text end and
260B.171, subdivisions 3 and 5new text begin , governing juvenile justice recordsnew text end .

(b) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.

new text begin Subd. 5a. new text end

new text begin Open meetings. new text end

new text begin A charter school must comply with chapter 13D
governing open meetings.
new text end

Subd. 6.

Length of school year.

A charter school must provide instruction each
year for at least the number of hours required by section 120A.41. It may provide
instruction throughout the year deleted text begin according todeleted text end new text begin undernew text end sections 124D.12 to 124D.127 or
124D.128 new text begin governing learning year programsnew text end .

Subd. 7.

Additional program-specific requirements.

(a) A charter school offering
online courses or programs must comply with section 124D.095new text begin governing online learningnew text end .

(b) A charter school that provides early childhood health and developmental screening
must comply with sections 121A.16 to 121A.19new text begin governing early childhood screeningnew text end .

(c) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38new text begin governing policies on concussionsnew text end .

Sec. 4.

Minnesota Statutes 2015 Supplement, section 124E.05, is amended to read:


124E.05 AUTHORIZERS.

Subdivision 1.

Eligible authorizers.

new text begin (a) new text end The deleted text begin followingdeleted text end organizations new text begin in this
subdivision
new text end may authorize one or more charter schoolsdeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1)deleted text end new text begin (b)new text end A school board, intermediate school district school board, or education
district organized under sections 123A.15 to 123A.19deleted text begin ;deleted text end new text begin may authorize a charter school.
new text end

deleted text begin (2)deleted text end new text begin (c)new text end A charitable organization under section 501(c)(3) of the Internal Revenue
Code of 1986deleted text begin , excluding a nonpublic sectarian or religious institution; any person other
than a natural person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with the nonpublic sectarian or
religious institution; and any other charitable organization under this clause that in the
federal IRS Form 1023, Part IV, describes activities indicating a religious purpose, that
deleted text end new text begin may authorize a charter school, if the organizationnew text end :

deleted text begin (i)deleted text end new text begin (1)new text end is a member of the Minnesota Council of Nonprofits or the Minnesota Council
on Foundations;

deleted text begin (ii)deleted text end new text begin (2)new text end is registered with the attorney general's office; deleted text begin and
deleted text end

deleted text begin (iii)deleted text end new text begin (3)new text end is incorporated in the state of Minnesota and has been operating continuously
for at least five years but does not operate a charter school;new text begin and
new text end

new text begin (4) is not:
new text end

new text begin (i) a nonpublic sectarian or religious institution;
new text end

new text begin (ii) any person other than a natural person that directly or indirectly, through one
or more intermediaries, controls, is controlled by, or is under common control with the
nonpublic sectarian or religious institution; or
new text end

new text begin (iii) any other charitable organization under this paragraph that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose.
new text end

deleted text begin (3)deleted text end new text begin (d)new text end A Minnesota private collegedeleted text begin , notwithstanding clause (2),deleted text end that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136Adeleted text begin ;deleted text end new text begin may authorize a charter school, notwithstanding paragraph (c).
new text end

new text begin (e)new text end deleted text begin community college,deleted text end new text begin Anew text end state new text begin college or new text end universitydeleted text begin , or technical collegedeleted text end governed
by the Board of Trustees of the Minnesota State Colleges and Universitiesdeleted text begin ; ordeleted text end new text begin may
authorize a charter school.
new text end

new text begin (f)new text end The University of Minnesotadeleted text begin ;deleted text end new text begin may authorize a charter school.
new text end

deleted text begin (4)deleted text end new text begin (g)new text end A nonprofit corporation subject to chapter 317A, described in section
317A.905deleted text begin ,deleted text end and exempt from federal income tax under section 501(c)(6) of the Internal
Revenue Code of 1986, may authorize one or more charter schools if the charter school
has operated for at least three years under a different authorizer and if the nonprofit
corporation has existed for at least 25 yearsdeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (5)deleted text end new text begin (h) Anew text end single-purpose deleted text begin authorizersdeleted text end new text begin authorizernew text end formed as new text begin a new text end charitable, nonsectarian
deleted text begin organizationsdeleted text end new text begin organizationnew text end under section 501(c)(3) of the Internal Revenue Code of 1986
and incorporated in the state of Minnesota under chapter 317A as a corporation with no
members or under section 322B.975 as a nonprofit limited liability company for the sole
purpose of chartering schoolsnew text begin may authorize a charter schoolnew text end .new text begin An eligible organization
interested in being approved as an authorizer under this paragraph must submit a proposal
to the commissioner that includes the provisions of subdivision 3 and a five-year financial
plan. A single-purpose authorizer under this paragraph shall consider and approve
charter school applications using the criteria under section 124E.06 and shall not limit
the applications it solicits, considers, or approves to any single curriculum, learning
program, or method.
new text end

Subd. 2.

Requirements for authorizers.

deleted text begin (a) Eligible organizations interested in
being approved as an authorizer under subdivision 1, clause (5), must submit a proposal to
the commissioner that includes the provisions of subdivision 3 and a five-year financial
plan. Such authorizers shall consider and approve charter school applications using
the criteria provided in section 124E.06 and shall not limit the applications it solicits,
considers, or approves to any single curriculum, learning program, or method.
deleted text end

deleted text begin (b)deleted text end The authorizer must participate in department-approved training.

Subd. 3.

Application process.

(a) An eligible authorizer under this section must
apply to the commissioner for approval as an authorizer before submitting any affidavit to
the commissioner to charter a school. The application for approval as a charter school
authorizer must deleted text begin demonstratedeleted text end new text begin shownew text end the applicant's ability to implement the procedures
and satisfy the criteria for chartering a school under this chapter. The commissioner
must approve or disapprove deleted text begin andeleted text end new text begin thenew text end application within 45 business days of the deleted text begin application
deleted text end deadlinenew text begin for that application periodnew text end . If the commissioner disapproves the application, the
commissioner must notify the applicant of the specific deficiencies in writing and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. After the 20 business days expire, the commissioner has 15 business days
to make a final decision to approve or disapprove the application. Failing to address
the deficiencies to the commissioner's satisfaction makes an applicant ineligible to be
an authorizer. The commissioner, in establishing criteria deleted text begin for approvaldeleted text end new text begin to approve an
authorizer, consistent with subdivision 4
new text end , must consider the applicant's:

(1) deleted text begin capacity anddeleted text end infrastructurenew text begin and capacity to serve as an authorizernew text end ;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

(b) A disapproved applicant under this section may resubmit an application during a
future application period.

Subd. 4.

Application content.

new text begin To be approved as an authorizer, new text end an applicant must
include in its application to the commissioner deleted text begin to be an approved authorizerdeleted text end at least the
following:

(1) how new text begin the organization carries out its mission by new text end chartering schools deleted text begin is a way for
the organization to carry out its mission
deleted text end ;

(2) deleted text begin a description of the capacity of the organizationdeleted text end new text begin the organization's capacitynew text end to
serve as an authorizer, including the personnel who deleted text begin willdeleted text end perform the authorizing duties,
their qualifications, the amount of time they deleted text begin will bedeleted text end new text begin arenew text end assigned deleted text begin todeleted text end this responsibility, and
the financial resources deleted text begin allocated bydeleted text end the organization new text begin allocates new text end to this responsibility;

(3) deleted text begin a description ofdeleted text end the application and review process the authorizer deleted text begin will usedeleted text end new text begin usesnew text end to
deleted text begin make decisions regarding the granting ofdeleted text end new text begin decide whether to grantnew text end charters;

(4) deleted text begin a description ofdeleted text end the type of contract it deleted text begin will arrangedeleted text end new text begin arrangesnew text end with the schools it
charters deleted text begin that meetsdeleted text end new text begin to meetnew text end the provisions of section 124E.10;

(5) the process deleted text begin to be useddeleted text end for deleted text begin providing ongoing oversight ofdeleted text end new text begin overseeingnew text end the schoolnew text begin ,
new text end consistent with deleted text begin the contract expectations specified indeleted text end clause (4) deleted text begin that assuresdeleted text end new text begin , to ensurenew text end that
the schools chartered deleted text begin are complyingdeleted text end new text begin complynew text end with deleted text begin both the provisions ofdeleted text end applicable law
and rulesdeleted text begin ,deleted text end and deleted text begin withdeleted text end the contract;

(6) deleted text begin a description ofdeleted text end the criteria and process the authorizer deleted text begin will usedeleted text end new text begin usesnew text end to deleted text begin grant
expanded
deleted text end new text begin approvenew text end applications new text begin adding grade or sites new text end under section 124E.06, subdivision 5;

(7) the process for deleted text begin making decisions regarding the renewal or termination ofdeleted text end new text begin renewing
or terminating
new text end the school's charter based on evidence deleted text begin that demonstratesdeleted text end new text begin showingnew text end the
academic, organizational, and financial competency of the school, including its success in
increasing student achievement and meeting the goals of the charter school agreement; and

(8) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.

Subd. 5.

Review by commissioner.

The commissioner shall review an authorizer's
performance every five years in a manner and form determined by the commissioner and
may review an authorizer's performance more frequently at the commissioner's own
initiative or at the request of a charter school operator, charter school board member, or
other interested party. The commissioner, after completing the review, shall transmit a
report with findings to the authorizer.

Subd. 6.

Corrective action.

(a) If, consistent with this chapter, the commissioner
finds that an authorizer has not deleted text begin fulfilleddeleted text end new text begin metnew text end the requirements of this chapter, the
commissioner may subject the authorizer to corrective action, which may include
terminating the contract with the charter school board of directors of a school it chartered.
The commissioner must notify the authorizer in writing of any findings that may subject
the authorizer to corrective action and the authorizer then has 15 business days to request
an informal hearing before the commissioner takes corrective action. If the commissioner
terminates a contract between an authorizer and a charter school under this paragraph, the
commissioner may assist the charter school in acquiring a new authorizer.

(b) The commissioner may at any time take corrective action against an authorizer,
including terminating an authorizer's ability to charter a school for:

(1) failing to demonstrate the criteria under subdivision deleted text begin 4deleted text end new text begin 3new text end under which the
commissioner approved the authorizer;

(2) violating a term of the chartering contract between the authorizer and the charter
school board of directors;

(3) unsatisfactory performance as an approved authorizer; or

(4) any good cause shown that deleted text begin providesdeleted text end new text begin givesnew text end the commissioner a legally sufficient
reason to take corrective action against an authorizer.

Subd. 7.

Withdrawal.

If the governing board of an approved authorizer votes to
withdraw as an approved authorizer for a reason unrelated to any cause under section
124E.10, subdivision 4, the authorizer must notify all its chartered schools and the
commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
the next calendar year, regardless of when the authorizer's five-year term of approval ends.
The commissioner may approve the transfer of a charter school to a new authorizer deleted text begin under
this subdivision
deleted text end after the new authorizer submits an affidavit to the commissioner.

Subd. 8.

Reports.

By September 30 of each year, an authorizer shall submit to the
commissioner a statement of income and expenditures related to chartering activities
during the previous school year ending June 30. deleted text begin A copy of the statement shall be given
to all schools chartered by the authorizer.
deleted text end new text begin The authorizer must transmit a copy of the
statement to all schools it charters.
new text end

Sec. 5.

Minnesota Statutes 2015 Supplement, section 124E.06, is amended to read:


124E.06 FORMING A SCHOOL.

Subdivision 1.

Individuals eligible to organize.

(a) An authorizer, after receiving
an application from a new text begin charter new text end school developer, may charter new text begin either new text end a licensed teacher
under section 122A.18, subdivision 1, or a group of individuals that includes one or more
licensed teachers under section 122A.18, subdivision 1, to operate a school subject to the
commissioner's approval of the authorizer's affidavit under subdivision 4.

new text begin (b) "Application" under this section means the charter school business plan a charter
school developer submits to an authorizer for approval to establish a charter school. This
application must include:
new text end

new text begin (1) the school developer's:
new text end

new text begin (i) mission statement;
new text end

new text begin (ii) school purposes;
new text end

new text begin (iii) program design;
new text end

new text begin (iv) financial plan;
new text end

new text begin (v) governance and management structure; and
new text end

new text begin (vi) background and experience;
new text end

new text begin (2) any other information the authorizer requests; and
new text end

new text begin (3) a "statement of assurances" of legal compliance prescribed by the commissioner.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end An authorizer shall not approve an application submitted by a charter school
developer under paragraph (a) if the application does not comply with subdivision 3,
paragraph deleted text begin (d)deleted text end new text begin (e)new text end , and section 124E.01, subdivision 1. The commissioner shall not
approve an affidavit submitted by an authorizer under subdivision 4 if the affidavit does
not comply with subdivision 3, paragraph deleted text begin (d)deleted text end new text begin (e)new text end , and section 124E.01, subdivision 1.

Subd. 2.

Nonprofit corporation.

(a) The school must be organized and operated as
a nonprofit corporation under chapter 317A and the provisions deleted text begin under the applicabledeleted text end new text begin of that
new text end chapter shall apply to the school except as provided in this chapter.

deleted text begin (b)deleted text end The operators authorized to organize and operate a schooldeleted text begin ,deleted text end new text begin must incorporate as a
nonprofit corporation
new text end before entering into a contract or other agreement for professional
or other services, goods, or facilitiesdeleted text begin , must incorporate as a nonprofit corporation under
chapter 317A
deleted text end .

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding sections 465.717 and 465.719, a school district, subject to
this chapter, may create a corporation for the purpose of establishing a charter school.

Subd. 3.

Requirements.

(a) The primary focus of a charter school must be to
provide a comprehensive program of instruction for at least one grade or age group from
new text begin ages new text end five through 18 years deleted text begin of agedeleted text end . deleted text begin Instructiondeleted text end new text begin A charter school new text end may deleted text begin be provideddeleted text end new text begin provide
instruction
new text end to people older than 18 years of age.

new text begin (b) new text end A charter school may offer a free or fee-based preschool or prekindergarten that
meets high-quality early learning instructional program standards deleted text begin that aredeleted text end aligned with
Minnesota's early learning standards for children. The hours a student is enrolled in a
fee-based prekindergarten program do not generate pupil units under section 126C.05 and
must not be used to calculate general education revenue under section 126C.10.

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. An authorizer may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution.

deleted text begin (c)deleted text end new text begin (d)new text end deleted text begin Charter schoolsdeleted text end new text begin A charter schoolnew text end must not be used deleted text begin as a method of providing
deleted text end new text begin to providenew text end education or deleted text begin generatingdeleted text end new text begin generatenew text end revenue for deleted text begin students who are being
deleted text end home-schoolednew text begin studentsnew text end . This paragraph does not apply to shared time aid under section
126C.19.

deleted text begin (d)deleted text end new text begin (e)new text end This chapter does not provide a means to keep open a school that a
school board decides to close. However, a school board may endorse or authorize deleted text begin the
establishment of
deleted text end new text begin establishingnew text end a charter school to replace the school the board decided to
close. Applicants seeking a charter under this circumstance must demonstrate to the
authorizer that the charter sought is substantially different in purpose and program from
the school the board closed and that the proposed charter satisfies the requirements of
section 124E.01, subdivision 1. If the school board that closed the school authorizes
the charter, it must document in its affidavit to the commissioner that the charter is
substantially different in program and purpose from the school it closed.

deleted text begin (e)deleted text end new text begin (f)new text end A school authorized by a school board may be located in any district, unless
the school board of the district of the proposed location disapproves new text begin the location new text end by
written resolution.

deleted text begin (f)deleted text end new text begin (g)new text end Except as provided in paragraph deleted text begin (a)deleted text end new text begin (b)new text end , a charter school may not charge tuition.

deleted text begin (g)deleted text end new text begin (h)new text end The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this chapter or does not meet
the ready-to-open standards that are part of new text begin (1) new text end the authorizer's oversight and evaluation
process or deleted text begin aredeleted text end new text begin (2)new text end stipulated in the charter school contract.

Subd. 4.

new text begin Authorizer's affidavit; new text end approval processdeleted text begin ; authorizer's affidavitdeleted text end .

new text begin (a)
new text end Before deleted text begin the operatorsdeleted text end new text begin an operatornew text end may establish and operate a school, the authorizer must
file an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. An authorizer must file
an affidavit at least 14 months before July 1 of the year the new charter school plans to
serve students. The affidavit must statenew text begin :
new text end

new text begin (1)new text end the terms and conditions under which the authorizer would charter a schoolnew text begin ;new text end and

new text begin (2)new text end how the authorizer intends to overseenew text begin :
new text end

new text begin (i)new text end the fiscal and student performance of the charter schoolnew text begin ;new text end and

deleted text begin to complydeleted text end new text begin (ii) compliancenew text end with the terms of the written contract between the
authorizer and the charter school board of directors under section 124E.10, subdivision 1.

new text begin (b)new text end The commissioner must approve or disapprove the authorizer's affidavit within
60 business days of deleted text begin receipt ofdeleted text end new text begin receivingnew text end the affidavit. If the commissioner disapproves the
affidavit, the commissioner shall notify the authorizer of the deficiencies in the affidavit
and the authorizer then has 20 business days to address the deficiencies. The commissioner
must notify the authorizer of new text begin the commissioner's new text end final approval or new text begin final new text end disapproval
within 15 business days after receiving the authorizer's response to the deficiencies
in the affidavit. If the authorizer does not address deficiencies to the commissioner's
satisfaction, the commissioner's disapproval is final. deleted text begin Failure to obtain commissioner
approval precludes
deleted text end An authorizer new text begin who fails to obtain the commissioner's approval is
precluded
new text end from chartering the school that is the subject of this affidavit.

Subd. 5.

deleted text begin Expansion of a charterdeleted text end new text begin Adding grades or sitesnew text end .

(a) A charter school
may apply to the authorizer to amend the school charter to deleted text begin expand the operation of
the school to additional
deleted text end new text begin addnew text end grades or deleted text begin sites that would be students'deleted text end primary enrollment
deleted text begin sitedeleted text end new text begin sitesnew text end beyond those defined in the original affidavit approved by the commissioner.
After approving the school's application, the authorizer shall submit a deleted text begin supplementary
deleted text end new text begin supplementalnew text end affidavit in the form and manner prescribed by the commissioner. The
authorizer must file a deleted text begin supplementdeleted text end new text begin supplementalnew text end affidavit new text begin to the commissioner new text end by October
1 to be eligible to deleted text begin expanddeleted text end new text begin add grades or sitesnew text end in the next school year. The deleted text begin supplementary
deleted text end new text begin supplementalnew text end affidavit must document deleted text begin that the school has demonstrated deleted text end to the new text begin authorizer's
new text end satisfaction deleted text begin of the authorizer the followingdeleted text end :

(1) the need for the deleted text begin expansiondeleted text end new text begin additional grades or sitesnew text end with supporting long-range
enrollment projections;

(2) a longitudinal record of deleted text begin demonstrateddeleted text end student academic performance and growth
on statewide assessments under chapter 120B or on other academic assessments that
measure longitudinal student performance and growth approved by the charter school's
board of directors and agreed upon with the authorizer;

(3) a history of sound school finances and a deleted text begin financedeleted text end plan to deleted text begin implement the expansion
in a manner to promote
deleted text end new text begin add grades or sites that sustainsnew text end the school's deleted text begin financial sustainability
deleted text end new text begin financesnew text end ; and

(4) board capacity deleted text begin and an administrative and management plan to implement its
expansion
deleted text end new text begin to administer and manage the additional grades or sitesnew text end .

(b) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer in writing of any
deficiencies in the supplemental affidavit and the authorizer then has 20 business days to
addressdeleted text begin , to the commissioner's satisfaction,deleted text end any deficiencies in the supplemental affidavit
new text begin to the commissioner's satisfactionnew text end . The commissioner must notify the authorizer of final
approval or new text begin final new text end disapproval within 15 business days after receiving the authorizer's
response to the deficiencies in the affidavit. The school may not deleted text begin expanddeleted text end new text begin addnew text end grades or deleted text begin add
deleted text end sites until the commissioner has approved the supplemental affidavit. The commissioner's
approval or disapproval of a supplemental affidavit is final.

Subd. 6.

Conversion of existing schools.

A board of an independent or special
school district may convert one or more of its existing schools to charter schools under
this chapter if 60 percent of the full-time teachers at the school sign a petition seeking
conversion. The conversion must occur at the beginning of an academic year.

Subd. 7.

Merger.

(a) Two or more charter schools may merge under chapter 317A.
The effective date of a merger must be July 1. The merged school must continue under
the identity of one of the merging schools. new text begin The authorizer and the merged school must
execute
new text end a new charter contract under section 124E.10, subdivision 1, deleted text begin must be executeddeleted text end by
July 1. The authorizer must submit to the commissioner a copy of the new signed charter
contract within ten business days of deleted text begin its executiondeleted text end new text begin executing the contractnew text end .

(b) Each merging school must submit a separate year-end report for the previous
new text begin fiscal new text end year for that school only. After the final fiscal year of the premerger schools is
closed out, new text begin each of those schools must transfer new text end the fund balances and debts deleted text begin from the
merging schools must be transferred
deleted text end to the merged school.

(c) For its first year of operation, the merged school is eligible to receive aid from
programs requiring approved applications equal to the sum of the aid of all of the merging
schools. For aids based on prior year data, the merged school is eligible to receive aid for
its first year of operation based on the combined data of all of the merging schools.

Sec. 6.

Minnesota Statutes 2015 Supplement, section 124E.07, is amended to read:


124E.07 BOARD OF DIRECTORS.

Subdivision 1.

Initial board of directors.

new text begin Before entering into a contract or other
agreement for professional or other services, goods, or facilities,
new text end the operators authorized
to organize and operate a schooldeleted text begin , before entering into a contract or other agreement for
professional or other services, goods, or facilities,
deleted text end must establish a board of directors
composed of at least five members who are not related partiesnew text begin . The initial board continues
to serve
new text end until a timely election for members of the ongoing charter school board of
directors is held according to the school's articles and bylaws under subdivision 4.

Subd. 2.

Ongoing board of directors.

The ongoing board must be elected before
the school completes its third year of operation. Board elections must be held during the
school year but may not be conducted on days when the school is closed deleted text begin for holidays,
breaks, or vacations
deleted text end .

Subd. 3.

Membershipnew text begin criterianew text end .

(a) The new text begin ongoing new text end charter school board of directors
shall deleted text begin be composed ofdeleted text end new text begin havenew text end at least five nonrelated members and include: (1) at least
one licensed teacher new text begin who is new text end employed as a teacher at the school or deleted text begin providingdeleted text end new text begin provides
new text end instruction under contract between the charter school and a cooperative; (2) at least one
parent or legal guardian of a student enrolled in the charter school who is not an employee
of the charter school; and (3) at least one interested community member who resides in
Minnesota deleted text begin anddeleted text end new text begin ,new text end is not employed by the charter schoolnew text begin ,new text end and does not have a child enrolled
in the school. The boardnew text begin structurenew text end may include a majority of teachers deleted text begin described indeleted text end new text begin under
new text end this paragraph or parents or community members, or it may have no clear majority. The
chief financial officer and the chief administrator may only serve as ex-officio nonvoting
board members. No charter school employees shall serve on the board other than teachers
under clause (1). Contractors providing facilities, goods, or services to a charter school
shall not serve on the board of directors of the charter school.

(b) An individual is prohibited from serving as a member of the charter school board
of directors ifnew text begin : (1)new text end the individual, an immediate family member, or the individual's partner
is a full or part owner or principal with a for-profit or nonprofit entity or independent
contractor with whom the charter school contracts, directly or indirectly, for professional
services, goods, or facilitiesdeleted text begin . An individual is prohibited from serving as a board member
if
deleted text end new text begin ; or (2)new text end an immediate family member is an employee of the school. new text begin An individual may
serve as a member of the board of directors if no conflict of interest exists under this
paragraph, consistent with this section.
new text end

new text begin (c) new text end A violation of deleted text begin this prohibitiondeleted text end new text begin paragraph (b)new text end renders a contract voidable at the
option of the commissioner or the charter school board of directors. A member of a charter
school board of directors who violates deleted text begin this prohibitiondeleted text end new text begin paragraph (b)new text end is individually liable
to the charter school for any damage caused by the violation.

deleted text begin (c)deleted text end new text begin (d)new text end Any employee, agent, or board member of the authorizer who participates
in deleted text begin the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision
deleted text end new text begin initially reviewing, approving, overseeing, evaluating,
renewing, or not renewing the charter school
new text end is ineligible to serve on the board of directors
of a school chartered by that authorizer.

deleted text begin (d) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (b) exists.
deleted text end

Subd. 4.

deleted text begin Structure ofdeleted text end Boardnew text begin structurenew text end .

Board bylaws shall outline the process and
procedures for changing the board's governance structure, consistent with chapter 317A.
A board may change its governance structure only:

(1) by a majority vote of the board of directors and a majority vote of the licensed
teachers employed by the school as teachers, including licensed teachers providing
instruction under a contract between the school and a cooperative; and

(2) with the authorizer's approval.

Any change in board governance structure must conform with the new text begin board new text end composition
deleted text begin of the boarddeleted text end established under this deleted text begin subdivisiondeleted text end new text begin sectionnew text end .

Subd. 5.

Eligible voters.

Staff members employed at the school, including teachers
providing instruction under a contract with a cooperative, members of the board of
directors, and all parents or legal guardians of children enrolled in the school are the voters
eligible to elect the members of the school's board of directors. A charter school must
notify eligible voters of the school board election dates at least 30 days before the election.

Subd. 6.

Duties.

The board of directors also shall decide and deleted text begin bedeleted text end new text begin arenew text end responsible
for policy matters related to deleted text begin the operation ofdeleted text end new text begin operatingnew text end the school, including budgeting,
curriculum programming, personnel, and operating procedures. The board shall adopt a
deleted text begin policy ondeleted text end nepotism deleted text begin in employmentdeleted text end new text begin policynew text end . The board shall adopt personnel evaluation
policies and practices that, at a minimum:

(1) carry out the school's mission and goals;

(2) evaluate deleted text begin the execution ofdeleted text end new text begin hownew text end charter contract goals and commitmentsnew text begin are
executed
new text end ;

(3) evaluate student achievement, postsecondary and workforce readiness, and
student engagement and connection goals;

(4) establish a teacher evaluation process under section 124E.03, subdivision 2,
paragraph (h); and

(5) provide professional development related to the individual's job responsibilities.

Subd. 7.

Training.

Every charter school board member shall attend annual training
throughout the member's term deleted text begin on the boarddeleted text end . All new board members shall attend initial
training on the board's role and responsibilities, employment policies and practices, and
financial management. A new board member who does not begin the required initial
training within six months after being seated and complete that training within 12 months
deleted text begin ofdeleted text end new text begin afternew text end being seated deleted text begin on the boarddeleted text end is automatically ineligible to continue to serve as a board
member. The school shall include in its annual report the training new text begin each board member
new text end attended deleted text begin by each board memberdeleted text end during the previous year.

Subd. 8.

Meetings and information.

(a) Board of director meetings must comply
with chapter 13Dnew text begin governing open meetingsnew text end .

(b) A charter school shall publish and maintain on the school's official Web site: (1)
the new text begin meeting new text end minutes deleted text begin of meetingsdeleted text end of the board of directorsdeleted text begin ,deleted text end and of members and committees
having deleted text begin anydeleted text end board-delegated authority, for at least deleted text begin one calendar yeardeleted text end new text begin 365 daysnew text end from the
date of publication; (2) directory information for deleted text begin members ofdeleted text end the board of directors and
new text begin for the members of new text end committees having board-delegated authority; and (3) identifying and
contact information for the school's authorizer.

new text begin (c) A charter school must include new text end identifying and contact information for the school's
authorizer deleted text begin must be includeddeleted text end in other school materials deleted text begin madedeleted text end new text begin it makesnew text end available to the public.

Sec. 7.

Minnesota Statutes 2015 Supplement, section 124E.08, is amended to read:


124E.08 deleted text begin COLLABORATION BETWEENdeleted text end CHARTER SCHOOL AND
SCHOOL DISTRICTnew text begin COLLABORATIONnew text end .

(a) A charter school board may voluntarily enter into a two-year, renewable
new text begin collaboration new text end agreement deleted text begin for collaborationdeleted text end new text begin with a school district in which the charter school
is geographically located
new text end to enhance deleted text begin studentdeleted text end new text begin thenew text end achievement deleted text begin with a school district within
whose geographic boundary it operates
deleted text end new text begin of the students in the district and the students in
the charter school
new text end .

deleted text begin (b)deleted text end A school district deleted text begin needdeleted text end new text begin doesnew text end not new text begin need to new text end be new text begin either new text end an approved authorizer new text begin or the
authorizer of the charter school
new text end to enter into a collaboration agreement deleted text begin with a charter
school
deleted text end new text begin under this sectionnew text end . deleted text begin A charter school need not be authorized by the school district
with which it seeks to collaborate.
deleted text end

deleted text begin (c)deleted text end A charter school authorizer is prohibited from requiring a collaboration
agreement as a condition of entering into or renewing a charter contract as defined in
section 124E.10, subdivision 1.

deleted text begin (d) Nothing in this section or in the collaboration agreement may impact in any way
the authority or autonomy of the charter school.
deleted text end

deleted text begin (e) Nothing in this section or in the collaboration agreement shall cause the state to
pay twice for the same student, service, or facility or otherwise impact state funding, or
the flow thereof, to the school district or the charter school.
deleted text end

deleted text begin (f)deleted text end new text begin (b)new text end The collaboration agreement may include, but deleted text begin needdeleted text end new text begin isnew text end not deleted text begin bedeleted text end limited
to, collaboration regarding facilities, transportation, training, student achievement,
assessments, mutual performance standards, and other areas of mutual agreement.

deleted text begin (g)deleted text end new text begin (c) For purposes of student assessment and reporting to the state under section
120B.36,
new text end the school district may include the academic performance of the students of a
collaborative charter school site deleted text begin operating within the geographic boundaries of the school
district, for purposes of student assessment and reporting to the state
deleted text end new text begin under paragraph (a)new text end .

deleted text begin (h)deleted text end Districts, authorizers, or charter schools entering into a collaborative agreement
are equally and collectively subject to the same state and federal accountability measures
for student achievement, school performance outcomes, and school improvement
strategies. The collaborative agreement and all accountability measures must be posted
on the district, charter school, and authorizer Web sites.

new text begin (d) Nothing in this section or in the collaboration agreement may impact in any way
the authority or autonomy of the charter school.
new text end

new text begin (e) Nothing in this section or in the collaboration agreement shall cause the state to
pay twice for the same student, service, or facility or otherwise impact state funding or
payment to the school district or the charter school.
new text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 124E.10, is amended to read:


124E.10 CHARTER CONTRACT.

Subdivision 1.

Contents.

(a) deleted text begin The authorization fordeleted text end new text begin To authorizenew text end a charter schoolnew text begin , the
authorizer and the charter school board of directors
new text end must deleted text begin be in the form ofdeleted text end new text begin signnew text end a written
contract deleted text begin signed by the authorizer and the board of directors of the charter school. The
contract must be completed
deleted text end within 45 business days of the commissioner's approval of
the authorizer's affidavit. The authorizer shall submit deleted text begin to the commissionerdeleted text end a copy of the
deleted text begin signeddeleted text end charter contract new text begin to the commissioner new text end within ten business days deleted text begin of its executiondeleted text end new text begin after
the contract is signed by the contracting parties
new text end . The contract deleted text begin for a charter schooldeleted text end must
deleted text begin be in writing and containdeleted text end new text begin includenew text end at least the following:

(1) a declaration that the charter school will carry out the primary purpose in section
124E.01, subdivision 1, and new text begin indicate new text end how the school will report its implementation of the
primary purposenew text begin to its authorizernew text end ;

(2) a declaration of the additional purpose or purposes in section 124E.01,
subdivision 1
, that the school intends to carry out and new text begin indicate new text end how the school will report
its implementation of those purposesnew text begin to its authorizernew text end ;

(3) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;

(4) a statement of admission policies and procedures;

(5) a new text begin school new text end governance, management, and administration plan deleted text begin for the schooldeleted text end ;

(6) signed agreements from charter school board members to comply with deleted text begin alldeleted text end new text begin the
new text end federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;

(7) the criteria, processes, and procedures deleted text begin thatdeleted text end the authorizer will use to monitor and
evaluate the fiscal, operational, and academic performancenew text begin ,new text end consistent with subdivision
3, paragraphs (a) and (b);

(8) for contract renewal, the formal written performance evaluation deleted text begin of the school
deleted text end that is a prerequisite for reviewing a charter contract under subdivision 3;

(9) types and amounts of insurance liability coverage deleted text begin to be obtained bydeleted text end the charter
schoolnew text begin must obtainnew text end , consistent with section 124E.03, subdivision 2, paragraph (d);

(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and
hold harmless deleted text begin the authorizer and its officers, agents, and employeesdeleted text end from any suit, claim,
or liability arising from any new text begin charter school new text end operation deleted text begin of the charter school,deleted text end new text begin :
new text end

new text begin (i) the authorizer and its officers, agents, and employees;new text end and

new text begin (ii) notwithstanding section 3.736,new text end the commissioner and department officers,
agents, and employees deleted text begin notwithstanding section 3.736deleted text end ;

(11) the term of the deleted text begin initialdeleted text end contract, whichnew text begin , for an initial contract,new text end may be up to five
years plus an additional preoperational planning year, deleted text begin and up to five yearsdeleted text end new text begin ornew text end for a renewed
contract or a contract with a new authorizer after a transfer of authorizersnew text begin , may be up to
five years
new text end , if warranted by the school's academic, financial, and operational performance;

(12) how the new text begin charter school new text end board of directors or the new text begin charter school new text end operators deleted text begin of the
charter school
deleted text end will provide special instruction and services for children with a disability
under sections 125A.03 to 125A.24, and 125A.65, new text begin and new text end a description of the financial
parameters within which the charter school will deleted text begin operate todeleted text end provide the special instruction
and services to children with a disability;

(13) the specific conditions for contract renewal that identify new text begin the new text end performance of
all students under the primary purpose of section 124E.01, subdivision 1, as the most
important factor in determining new text begin whether to renew the new text end contract deleted text begin renewaldeleted text end ;new text begin and
new text end

(14) the additional purposes under section 124E.01, subdivision 1, and related
performance obligations under clause (7) contained in the charter contract as additional
factors in determining new text begin whether to renew the new text end contract deleted text begin renewal; anddeleted text end new text begin .
new text end

deleted text begin (15)deleted text end new text begin (b) In addition to the requirements of paragraph (a), the charter contract must
contain
new text end the plan for an orderly closing of the school under chapter 317A, new text begin that establishes
the responsibilities of the school board of directors and the authorizer,
new text end whether the closure
is a termination for cause, a voluntary termination, or a nonrenewal of the contractdeleted text begin , that
includes establishing the responsibilities of the school board of directors and the authorizer
and notifying
deleted text end new text begin . The plan must establish who is responsible for:
new text end

new text begin (1) notifyingnew text end the commissioner, deleted text begin authorizer,deleted text end school district in which the charter
school is located, and parents of enrolled students about the closuredeleted text begin ,deleted text end new text begin ;
new text end

new text begin (2) providing parents of enrolled studentsnew text end information and assistance deleted text begin sufficientdeleted text end to
enable the student to re-enroll in another schooldeleted text begin , thedeleted text end new text begin ;
new text end

new text begin (3)new text end deleted text begin transfer ofdeleted text end new text begin transferringnew text end student records under section 124E.03, subdivision 5,
paragraph (b), new text begin to the student's resident school district; new text end and

new text begin (4)new text end deleted text begin procedures fordeleted text end closing financial operations.

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must design its programs to at least meet the outcomes
adopted by the commissioner for public school students. In the absence of the
commissioner's requirementsnew text begin governing state standards and benchmarksnew text end , the school must
meet the outcomes contained in the contract with the authorizer. The achievement levels
of the outcomes contained in the contract may exceed the achievement levels of any
outcomes adopted by the commissioner for public school students.

Subd. 2.

deleted text begin Limitationsdeleted text end new text begin Limitsnew text end on charter deleted text begin contractdeleted text end new text begin school agreementsnew text end .

(a) new text begin A
school must disclose to the commissioner
new text end any potential contract, lease, or purchase of
service from an authorizer deleted text begin must be disclosed to the commissioner,deleted text end new text begin . The contract, lease, or
purchase must be
new text end accepted through an open bidding processdeleted text begin ,deleted text end and be deleted text begin adeleted text end separate deleted text begin contract
deleted text end from the charter contract. The school must document the open bidding process. An
authorizer must not enter into a contract to provide management and financial services deleted text begin for
deleted text end new text begin tonew text end a school deleted text begin thatdeleted text end it authorizes, unless the school documents deleted text begin that it receiveddeleted text end new text begin receivingnew text end at
least two competitive bids.

(b) deleted text begin Thedeleted text end new text begin An authorizer must not conditionnew text end granting or deleted text begin renewal ofdeleted text end new text begin renewingnew text end a charter
deleted text begin school by an authorizer must not be contingentdeleted text end onnew text begin :
new text end

new text begin (1)new text end the charter school being required to contract, lease, or purchase services from
the authorizerdeleted text begin .deleted text end new text begin ; or
new text end

deleted text begin (c) The granting or renewal of a charter by an authorizer must not be conditioned
upon
deleted text end new text begin (2)new text end the bargaining unit status of deleted text begin thedeleted text end new text begin schoolnew text end employees deleted text begin of the schooldeleted text end .

Subd. 3.

Review and comment.

(a) The authorizer shall provide a formal written
evaluation of the school's performance before the authorizer renews the charter contract.
The deleted text begin departmentdeleted text end new text begin commissionernew text end must review and comment on the authorizer's evaluation
process at the time the authorizer submits its application for approval and each time the
authorizer undergoes its five-year review under section 124E.05, subdivision 5.

(b) An authorizer shall monitor and evaluate the academic, financial, operational,
and student performance of the school, and may deleted text begin for this purpose annuallydeleted text end assess a charter
school a fee according to paragraph (c). The agreed-upon fee structure must be stated in
the charter school contract.

(c) The fee that an authorizer may annually assess is the greater of:

(1) the basic formula allowance for that year; or

(2) the lesser of:

(i) the maximum fee factor times the basic formula allowance for that year; or

(ii) the fee factor times the basic formula allowance for that year times the charter
school's adjusted pupil units for that year. The fee factor equals .015. The maximum
fee factor equals 4.0.

(d) An authorizer may not assess a fee for any required services other than as
provided in this subdivision.

(e) For the preoperational planning period, after a school is chartered, the authorizer
may assess a charter school a fee equal to the basic formula allowance.

Subd. 4.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with an authorizer must be for the term contained in the
contract according to subdivision 1, paragraph (a). The authorizer may or may not renew a
contract at the end of the term for any ground listed in paragraph (b). An authorizer may
unilaterally terminate a contract during the term of the contract for any ground listed in
paragraph (b). At least 60 business days before not renewing or terminating a contract,
the authorizer shall notify the board of directors of the charter school of the proposed
action in writing. The notice shall state the grounds for the proposed action in reasonable
detail and deleted text begin thatdeleted text end new text begin describe the informal hearing process, consistent with this paragraph.new text end The
charter school's board of directors may request in writing an informal hearing before the
authorizer within 15 business days deleted text begin ofdeleted text end new text begin afternew text end receiving notice of nonrenewal or termination
of the contract. Failure by the board of directors to make a written request for an informal
hearing within the 15-business-day period shall be treated as acquiescence to the proposed
action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
business days' notice to the charter school's board of directors of the hearing date. The
authorizer shall conduct an informal hearing before taking final action. The authorizer
shall take final action to renew or not renew a contract no later than 20 business days
before the proposed date for terminating the contract or the end date of the contract.

(b) new text begin An authorizer may terminate or not renew new text end a contract deleted text begin may be terminated or not
renewed
deleted text end upon any of the following grounds:

(1) failure to demonstrate satisfactory academic achievement for all students,
including the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If new text begin the authorizer terminates or does not renew new text end a contract deleted text begin is terminated or not
renewed
deleted text end under this paragraph, the school must be dissolved according to the applicable
provisions of chapter 317A.

(c) The commissioner, after providing reasonable notice to the board of directors of
a charter school and the existing authorizer, and after providing an opportunity for a public
hearing, may terminate the existing contract between the authorizer and the charter school
board if the charter school has a history of:

(1) failure to meet pupil performance requirementsnew text begin ,new text end consistent with state law;

(2) financial mismanagement or failure to meet generally accepted standards of
fiscal management; or

(3) repeated or major violations of the law.

Subd. 5.

Mutual nonrenewal.

If the authorizer and the charter school board of
directors mutually agree not to renew the contract, a change in authorizers is allowed. The
authorizer and the school board must jointly submit a written and signed letter of their
intent to the commissioner to mutually not renew the contract. The authorizer that is a party
to the existing contract must inform the proposed authorizer about the fiscal, operational,
and student performance status of the school, as well as any outstanding contractual
obligations deleted text begin that existdeleted text end . The charter contract between the proposed authorizer and the school
must identify and provide a plan to address any outstanding obligations from the previous
contract. new text begin The proposed authorizer must submit new text end the proposed contract deleted text begin must be submitteddeleted text end at
least 105 business days before the end of the existing charter contract. The commissioner
deleted text begin shall havedeleted text end new text begin hasnew text end 30 business days to review and make a determinationnew text begin on the change in
authorizer
new text end . The proposed authorizer and the school deleted text begin shalldeleted text end have 15 business days to respond
to the determination and address any issues identified by the commissioner. deleted text begin A final
determination by
deleted text end The commissioner deleted text begin shall be madedeleted text end new text begin must make a final determinationnew text end no later
than 45 business days before the end of the current charter contract. If deleted text begin nodeleted text end new text begin the commissioner
does not approve a
new text end change in authorizer deleted text begin is approveddeleted text end , the school and the current authorizer
may withdraw their letter of nonrenewal and enter into a new contract. If the deleted text begin transfer of
authorizers is not approved
deleted text end new text begin commissioner does not approve a change in authorizernew text end and the
current authorizer and the school do not withdraw their letter and enter into a new contract,
the school must be dissolved according to applicable law and the terms of the contract.

Subd. 6.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

new text begin (a) new text end If a contract is not renewed or is terminated according to subdivision 4 or
5, a pupil who attended the school, siblings of the pupil, or another pupil who resides
deleted text begin in the same place asdeleted text end new text begin withnew text end the pupil may enroll in the resident district or may submit
an application to a nonresident district according to section 124D.03 new text begin governing open
enrollment
new text end at any time. Applications and notices required by section 124D.03 must be
processed and provided in a prompt manner. The application and notice deadlines in
section 124D.03 do not apply under these circumstances.

new text begin (b) Within ten business days of closing the charter school, new text end the closed deleted text begin charterdeleted text end school
must transfer the student's educational records deleted text begin within ten business days of closuredeleted text end to the
student's school district of residence where the records must be retained or transferred
under section 120A.22, subdivision 7.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 124E.12, is amended to read:


124E.12 EMPLOYMENT.

Subdivision 1.

Teachers.

A charter school must employ or contract with necessary
teachers, as defined by section 122A.15, subdivision 1, who hold valid licenses to perform
the particular service for which they are employed in the school. new text begin The commissioner may
reduce
new text end the charter school's state aid deleted text begin may be reduceddeleted text end under section 127A.43 if the school
employs a teacher who is not appropriately licensed or approved by the board of teaching.
The school may employ necessary employees who are not required to hold teaching
licenses to perform duties other than teaching and may contract for other services. The
school may discharge teachers and nonlicensed employees. The charter school board is
subject to section 181.932new text begin governing whistle-blowersnew text end . When offering employment to a
prospective employee, a charter school must give that employee a written description of
the terms and conditions of employment and the school's personnel policies.

Subd. 2.

Administrators.

new text begin (a) new text end A person, without holding a valid administrator's
license, may perform administrative, supervisory, or instructional leadership duties.
The board of directors shall establish qualifications for new text begin all new text end persons deleted text begin thatdeleted text end new text begin who new text end hold
administrative, supervisory, or instructional leadership roles. The qualifications shall
deleted text begin includedeleted text end new text begin covernew text end at least deleted text begin the following areasdeleted text end : instruction and assessment; human resource
and personnel management; financial management; legal and compliance management;
effective communication; and board, authorizer, and community relationships. The board
of directors shall use those qualifications as the basis for job descriptions, hiring, and
performance evaluations of those who hold administrative, supervisory, or instructional
leadership roles.

new text begin (b)new text end The board of directors and an individual who does not hold a valid administrative
license and who serves in an administrative, supervisory, or instructional leadership
position shall develop a professional development plan. deleted text begin Documentation of the
implementation of
deleted text end new text begin The school's annual report must include public personnel information
documenting
new text end the professional development plan deleted text begin of these persons shall be included in
the school's annual report
deleted text end .

Subd. 3.

Collective bargaining.

Employees of the board of directors of a charter
school may, if otherwise eligible, organize under chapter 179A and comply with its
provisions. The board of directors of a charter school is a public employer, for the
purposes of chapter 179A, deleted text begin upon formation ofdeleted text end new text begin when formingnew text end one or more bargaining units
at the school. Bargaining units at the school must be separate from any other units within
an authorizing district, except that bargaining units may remain part of the appropriate
unit within an authorizing districtdeleted text begin ,deleted text end if the employees of the school, the board of directors of
the school, the exclusive representative of the appropriate unit in the authorizing district,
and the board of the authorizing district agree to include the employees in the appropriate
unit of the authorizing district. The board of directors of a charter school with employees
organized under this subdivision must comply with sections 471.6161new text begin governing group
insurance
new text end and 471.895new text begin governing giftsnew text end .

Subd. 4.

Teacher and other employee retirement.

(a) Teachers in a charter school
must be public school teachers for the purposes of chapters 354 and 354Anew text begin governing the
Teacher Retirement Act
new text end .

(b) Except for teachers under paragraph (a), employees in a charter school must
be public employees for the purposes of chapter 353new text begin governing the Public Employees
Retirement Act
new text end .

Subd. 5.

Group health insurance.

new text begin (a) new text end A charter school board with at least 25
employees or a teacher cooperative of licensed teachers providing instruction under
a contract between a school and a cooperative that provides group health insurance
coverage shall:

(1) request proposals for group health insurance coverage from a minimum of three
sources at least every two years; and

(2) notify employees covered by the group health insurance coverage before the
effective date of the changes in the group coverage policy contract.

new text begin (b) new text end A charter school board or a cooperative of teachers that provides group health
insurance coverage must establish and publish on its Web site the policy for deleted text begin the purchase
of
deleted text end new text begin purchasingnew text end group health insurance coverage. A charter school board policy must
include a sealed proposal process, which requires all proposals to be opened at the same
time. Upon deleted text begin the openings ofdeleted text end new text begin openingnew text end the proposals deleted text begin in accordance withdeleted text end new text begin according tonew text end the
school or cooperative policy, the proposals become public data under chapter 13.

Nothing in this subdivision supersedes the right of an exclusive representative to negotiate
deleted text begin overdeleted text end new text begin thenew text end terms and conditions of employment.

Subd. 6.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school, the
district must grant the leave. The district must grant a leave not to exceed a total of five
years. Any request to extend the leave shall be granted only at the discretion of the school
board. The district may require deleted text begin thatdeleted text end new text begin a teacher to makenew text end the request for a leave or extension
of leave deleted text begin be madedeleted text end before February 1 in the school year preceding the school year in which
the teacher intends to leave, or February 1 of the calendar year in which the teacher's leave
is scheduled to terminate. Except as otherwise provided in this subdivision and deleted text begin except
for
deleted text end section 122A.46, subdivision 7new text begin , governing employment in another districtnew text end , the leave
is governed by section 122A.46, including, but not limited to, reinstatement, notice of
intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account under chapters 354 and 354A, consistent with
subdivision 4.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 124E.13, is amended to read:


124E.13 FACILITIES.

Subdivision 1.

Leased space.

A charter school may lease space fromnew text begin :new text end an
independent or special school boarddeleted text begin ,deleted text end new text begin ;new text end other public organizationdeleted text begin ,deleted text end new text begin ;new text end private, nonprofitnew text begin ,
new text end nonsectarian organizationdeleted text begin ,deleted text end new text begin ;new text end private property ownerdeleted text begin ,deleted text end new text begin ;new text end or a sectarian organization if the
leased space is constructed as a school facility. The deleted text begin departmentdeleted text end new text begin commissionernew text end must
review and approve or disapprove leases in a timely manner deleted text begin for purposes of determining
deleted text end new text begin to determine new text end eligibility for lease aid under section 124E.22.

Subd. 2.

Related party lease costs.

(a) A charter school deleted text begin is prohibited from entering
deleted text end new text begin must not enter intonew text end a lease of real property with a related party unless the lessor is a
nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
lease cost is reasonable under section 124E.22, paragraph (a), clause (1).

(b) A deleted text begin lease of real property to be used for a charter school, not excluded indeleted text end new text begin related
party permitted to enter into a lease under
new text end paragraph (a)deleted text begin ,deleted text end must deleted text begin containdeleted text end new text begin includenew text end the
following statementnew text begin in the leasenew text end : "This lease is subject to Minnesota Statutes, section
124E.13, subdivision 2."

(c) If a charter school deleted text begin enters into as lessee a lease withdeleted text end new text begin leases space fromnew text end a related
party and the charter school subsequently closes, the commissioner has the right to recover
from the deleted text begin lessordeleted text end new text begin related partynew text end any lease payments in excess of those that are reasonable
under section 124E.22, paragraph (a), clause (1).

Subd. 3.

Affiliated nonprofit building corporation.

(a) new text begin An affiliated nonprofit
building corporation may purchase, expand, or renovate an existing facility to serve as a
school or may construct a new school facility.
new text end A charter school may organize an affiliated
nonprofit building corporation deleted text begin (1) to purchase, expand, or renovate an existing facility to
serve as a school or (2) to construct a new school facility
deleted text end if the charter school:

deleted text begin (i)deleted text end new text begin (1)new text end has deleted text begin been in operationdeleted text end new text begin operatednew text end for at least six consecutive years;

deleted text begin (ii)deleted text end new text begin (2)new text end as of June 30new text begin ,new text end has a net positive unreserved general fund balance in the
preceding three fiscal years;

deleted text begin (iii)deleted text end new text begin (3)new text end has long-range strategic and financial plans that include enrollment
projections for at least five years;

deleted text begin (iv)deleted text end new text begin (4)new text end completes a feasibility study of facility options that outlines the benefits
and costs of deleted text begin the optionsdeleted text end new text begin each optionnew text end ; and

deleted text begin (v)deleted text end new text begin (5)new text end has a plan deleted text begin for purchase, renovation, or new construction whichdeleted text end new text begin thatnew text end describes
project parameters and budget.

(b) An affiliated nonprofit building corporation under this subdivision must:

(1) be incorporated under section 317A;

(2) comply with applicable Internal Revenue Service regulations, including
regulations for "supporting organizations" as defined by the Internal Revenue Service;

(3) post on the school Web site the name, mailing address, bylaws, minutes of board
meetings, and deleted text begin thedeleted text end names of the current board of directors of the affiliated nonprofit
building corporation;

(4) submit to the commissioner a copy of its annual audit by December 31 of each
year; and

(5) comply with government data practices law under chapter 13.

(c) An affiliated nonprofit building corporation must not serve as the leasing agent
for property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.

(d) deleted text begin Once an affiliated nonprofit building corporation is incorporated under this
subdivision,
deleted text end new text begin The board of directors of the charter school must ensure the affiliated
nonprofit building corporation complies with all applicable legal requirements.
new text end The new text begin charter
school's
new text end authorizer deleted text begin of the schooldeleted text end must oversee the efforts of the deleted text begin school'sdeleted text end board of directors
new text begin of the charter school new text end to ensure deleted text begin the affiliated nonprofit building corporation complies
with all legal requirements governing the affiliated nonprofit building corporation
deleted text end new text begin legal
compliance of the affiliated building corporation
new text end . A school's board of directors that
fails to ensure the affiliated nonprofit building corporation's compliance violates its
responsibilities and an authorizer must deleted text begin factor thedeleted text end new text begin consider thatnew text end failure deleted text begin into the authorizer's
evaluation of
deleted text end new text begin when evaluating new text end the new text begin charter new text end school.

Subd. 4.

Positive review and comment.

new text begin If the amount of a purchase agreement or
construction contract exceeds the review and comment threshold,
new text end a charter school or its
affiliated nonprofit building corporation must receive a positive review and comment from
the commissioner before initiating any purchase agreement or construction contract deleted text begin that
requires an expenditure in excess of the threshold specified in section 123B.71, subdivision
8
, for school districts that do not have a capital loan outstanding
deleted text end . new text begin Without a positive
review and comment from the commissioner,
new text end a purchase agreement or construction
contract deleted text begin finalized before a positive review and commentdeleted text end new text begin under this subdivisionnew text end is null and
void.new text begin For purposes of this subdivision, "review and comment threshold" means the dollar
amount specified in section 123B.71, subdivision 8, applicable to a school entity that is
not a recipient of a maximum effort capital loan.
new text end

Sec. 11.

Minnesota Statutes 2015 Supplement, section 124E.15, is amended to read:


124E.15 TRANSPORTATION.

(a) A charter school must comply with all pupil transportation requirements in
section 123B.88, subdivision 1. A charter school must not require parents to surrender
their rights to pupil transportation under section 123B.88, subdivision 2.

(b) deleted text begin A charter school after its first fiscal year of operation by March 1 of each fiscal
year and
deleted text end A charter school deleted text begin by July 1 of its first fiscal year of operationdeleted text end must notify the
district in which the school is located and the deleted text begin Department of Educationdeleted text end new text begin commissioner by
July 1 of its first fiscal year of operation
new text end if it will provide its own transportation or use the
transportation services of the district in which it is located deleted text begin for the fiscal yeardeleted text end .new text begin For each
subsequent year of operation, a charter school must give that district and the commissioner
notice by March 1 for the following fiscal year.
new text end

(c) If a charter school elects to provide transportation for pupils, new text begin the charter school
must provide
new text end the transportation deleted text begin must be provided by the charter schooldeleted text end within the district
in which the charter school is located. The state must pay transportation aid to the charter
school according to section 124E.23.

new text begin (d) new text end For pupils who reside outside the district in which the charter school is located,
the charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. new text begin The charter
school may reimburse
new text end a parent deleted text begin may be reimbursed by the charter schooldeleted text end for costs of
transportation from the pupil's residence to the border of the district in which the charter
school is located if the pupil is from a family whose income is at or below the poverty
level, as determined by the federal government. The reimbursement may not exceed
the pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less.
Reimbursement may not be paid for more than 250 miles per week.

deleted text begin At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.
deleted text end

deleted text begin (d)deleted text end new text begin (e)new text end If a charter school does not elect to provide transportation, new text begin the district in which
the school is located must provide
new text end transportation deleted text begin for pupils enrolled at the school must
be provided by the district in which the school is located
deleted text end , according to sections 123B.88,
subdivision 6
new text begin , governing transporting nonresident pupilsnew text end , and 124D.03, subdivision 8, for
a pupil residing in the same district in which the charter school is located. new text begin The district in
which the charter school is located may provide
new text end transportation deleted text begin may be provided by the
district in which the school is located
deleted text end , according to sections 123B.88, subdivision 6, and
124D.03, subdivision 8new text begin , governing open enrollment transportationnew text end , for a pupil residing
in a different district. If the district provides the transportation, the scheduling of routes,
manner and method of transportation, control and discipline of the pupils, and any other
matter relating to the transportation of pupils under this paragraph deleted text begin shall bedeleted text end new text begin isnew text end within the
sole discretion, control, and management of the district.

new text begin (f) The charter school must provide the parent or guardian with information about
transportation when a pupil enrolls.
new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 124E.16, is amended to read:


124E.16 REPORTS.

Subdivision 1.

Audit report.

(a) A charter school is subject to the same financial
audits, audit procedures, and audit requirements as a district, except as required under
this subdivision. Audits must be conducted in compliance with generally accepted
governmental auditing standards, the federal Single Audit Act, if applicable, and section
6.65new text begin governing auditing proceduresnew text end . A charter school is subject to and must comply
with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06deleted text begin ;
deleted text end new text begin governing government property and financial investments; and sectionsnew text end 471.38; 471.391;
471.392; and 471.425new text begin governing municipal contractingnew text end . The audit must comply with the
requirements of sections 123B.75 to 123B.83new text begin governing school district financenew text end , except
deleted text begin to the extent deviations are necessary because of the program at the schooldeleted text end new text begin when the
commissioner and authorizer approve a deviation made necessary because of school
program finances
new text end . deleted text begin Deviations must be approved by the commissioner and authorizer.deleted text end The
deleted text begin Department of Educationdeleted text end new text begin commissionernew text end , state auditor, legislative auditor, or authorizer
may conduct financial, program, or compliance audits. A charter school deleted text begin determined to be
deleted text end in statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under
section 123B.81, subdivision 4.

(b) The charter school must submit an audit report to the commissioner and its
authorizer new text begin annually new text end by December 31 deleted text begin each yeardeleted text end .

(c) The charter school, with the assistance of the auditor conducting the audit,
must include with the report, as supplemental informationdeleted text begin ,deleted text end new text begin : (1)new text end a copy of management
agreements with a charter management organization or an educational management
organization and new text begin (2) new text end service agreements or contracts over the lesser of $100,000 or ten
percent of the school's most recent annual audited expenditures. The agreements must
detail the terms of the agreement, including the services provided and the annual costs for
those services. If the entity that provides the professional services to the charter school is
exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
must file with the commissioner by February 15 a copy of the annual return required under
section 6033 of the Internal Revenue Code of 1986.

(d) A charter school independent audit report shall include audited financial data
of an affiliated building corporation new text begin under section 124E.13, subdivision 3, new text end or other
component unit.

(e) If the audit report finds that a material weakness exists in the financial reporting
systems of a charter school, the charter school must submit a written report to the
commissioner explaining how thenew text begin charter school will resolve thatnew text end material weakness deleted text begin will
be resolved
deleted text end . An auditor, as a condition of providing financial services to a charter school,
must agree to make available information about a charter school's financial audit to the
commissioner and authorizer upon request.

Subd. 2.

Annual public reports.

(a) A charter school must publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, innovative practices and implementation, and future plans. A
charter school may combine this report with the reporting required under section 120B.11
new text begin governing the world's best workforcenew text end . A charter school must post the annual report on
the school's official Web site. A charter school new text begin also new text end must deleted text begin alsodeleted text end distribute the annual report
by publication, mail, or electronic means to its authorizer, school employees, and parents
and legal guardians of students enrolled in the charter school. The reports are public
data under chapter 13.

(b) The commissioner shall establish specifications for an authorizer's annual public
report that is part of the system to evaluate authorizer performance under section 124E.05,
subdivision 5
. The report shall at least include key indicators of school academic,
operational, and financial performance.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 124E.17, is amended to read:


124E.17 DISSEMINATION OF INFORMATION.

Subdivision 1.

Charter school information.

(a) deleted text begin Authorizers and the department
must disseminate information to the public on how to form and operate a charter school.
deleted text end Charter schools must disseminate information about how to use the new text begin charter school
new text end offerings deleted text begin of a charter schooldeleted text end new text begin to targeted groups, among othersnew text end . Targeted groups include
low-income families and communities, students of color, and students who are at risk
of academic failure.

(b) new text begin Authorizers and the commissioner must disseminate information to the public
on how to form and operate a charter school.
new text end Authorizers, operators, and the deleted text begin department
deleted text end new text begin commissionernew text end also may disseminate informationnew text begin to interested stakeholdersnew text end about the
successful best practices in teaching and learning demonstrated by charter schools.

Subd. 2.

Financial information.

Upon request of an individual, the charter school
must deleted text begin alsodeleted text end make available in a timely fashion financial statements showing all operations
and transactions affectingnew text begin the school'snew text end income, surplus, and deficit during the deleted text begin school's
deleted text end last annual accounting period; and a balance sheet summarizing assets and liabilities
on the closing date of the accounting period. A charter school also must include that
same information about its authorizer in other school materials that it makes available
to the public.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 124E.22, is amended to read:


124E.22 BUILDING LEASE AID.

(a) When a charter school finds it economically advantageous to rent or lease a
building or land for any instructional deleted text begin purposesdeleted text end new text begin purposenew text end and it determines that the total
operating capital revenue under section 126C.10, subdivision 13, is insufficient for this
purpose, it may apply to the commissioner for building lease aid deleted text begin for this purposedeleted text end . The
commissioner must review and either approve or deny a lease aid application using the
following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school. The commissioner must approve aid only
for a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve
the charter school of its lease obligations at the time the charter contract is terminated or
not reneweddeleted text begin ;deleted text end new text begin .new text end The closure clause new text begin under item (ii) new text end must not be constructed or construed to
relieve the charter school of its lease obligations in effect before the charter contract is
terminated or not renewed.

new text begin (b) new text end A charter school must not use the building lease aid it receives for custodial,
maintenance service, utility, or other operating costs.

deleted text begin (b)deleted text end new text begin (c)new text end The amount of annual building lease aid for a charter school shall not exceed
the lesser of (1) 90 percent of the approved cost or (2) the product of the pupil units served
for the current school year times $1,314.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 124E.24, is amended to read:


124E.24 OTHER AID, GRANTS, AND REVENUE.

(a) A charter school is eligible to receive other aids, grants, and revenue according to
chapters 120A to 129C, as though it were a district.

(b) Notwithstanding paragraph (a), a charter school may not receive aid, a grant, or
revenue if a levy is required to obtain the money, or if the aid, grant, or revenue replaces levy
revenue that is not general education revenue, except as otherwise provided in this chapter.

(c) Federal aid received by the state must be paid to the school, if it qualifies for
the aidnew text begin ,new text end as though it were a school district.

(d) A charter school may receive money from any source for capital facilities needs.
In the year-end report to the commissioner deleted text begin of educationdeleted text end , the charter school shall report the
total amount of funds new text begin it new text end received from grants and other outside sources.

Sec. 16.

Minnesota Statutes 2015 Supplement, section 124E.25, is amended to read:


124E.25 PAYMENT OF AIDS TO CHARTER SCHOOLS.

Subdivision 1.

Payments.

deleted text begin (a)deleted text end Notwithstanding section 127A.45, subdivision 3, if the
current year aid payment percentage under section 127A.45, subdivision 2, paragraph (d), is
90 or greater, aid payments for the current fiscal year to a charter school shall be of an equal
amount on each of the 24 payment dates. Notwithstanding section 127A.45, subdivision
3
, if the current year aid payment percentage under section 127A.45, subdivision 2,
paragraph (d), is less than 90, aid payments for the current fiscal year to a charter school
shall be of an equal amount on each of the 16 payment dates in July through February.

new text begin Subd. 1a. new text end

new text begin School closures; payments. new text end

deleted text begin (b)deleted text end new text begin (a)new text end Notwithstanding deleted text begin paragraph (a)
deleted text end new text begin subdivision 1new text end and section 127A.45, for a charter school ceasing operation on or deleted text begin prior
to
deleted text end new text begin beforenew text end June 30 deleted text begin of a school yeardeleted text end , for the payment periods occurring after the school
ceases serving students, the commissioner shall withhold the estimated state aid owed
the school. The charter school board of directors and authorizer must submit to the
commissioner a closure plan under chapter 308A or 317A, and financial information about
the school's liabilities and assets. After receiving the closure plan, financial information,
an audit of pupil counts, deleted text begin documentation ofdeleted text end new text begin and documentednew text end lease expendituresdeleted text begin ,deleted text end new text begin from
the charter school
new text end and monitoring deleted text begin ofdeleted text end special education expenditures, the commissioner
may release cash withheld and may continue regular payments up to the current year
payment percentages if further amounts are owed. If, based on audits and monitoring,
the school received state aid in excess of the amount owed, the commissioner shall retain
aid withheld sufficient to eliminate the aid overpayment.

new text begin (b) new text end For a charter school ceasing operations deleted text begin prior to,deleted text end new text begin beforenew text end or at the end ofdeleted text begin ,deleted text end a
school year, notwithstanding section 127A.45, subdivision 3, new text begin the commissioner may
make
new text end preliminary final payments deleted text begin may be madedeleted text end after deleted text begin receivingdeleted text end new text begin the school submitsnew text end the
closure plan, new text begin an new text end audit of pupil counts, deleted text begin monitoring of special education expenditures,
documentation of
deleted text end new text begin documentednew text end lease expenditures, and deleted text begin school submission ofdeleted text end Uniform
Financial Accounting and Reporting Standards (UFARS) financial data new text begin and the
commissioner monitors special education expenditures
new text end for the final year of operation. new text begin The
commissioner may make the
new text end final payment deleted text begin may be made upon receipt ofdeleted text end new text begin after receiving
new text end audited financial statements under section 123B.77, subdivision 3.

(c) Notwithstanding sections 317A.701 to 317A.791, deleted text begin upon closure ofdeleted text end new text begin after closing
new text end a charter school and deleted text begin satisfaction ofdeleted text end new text begin satisfyingnew text end creditors, new text begin remaining new text end cash and investment
balances deleted text begin remainingdeleted text end shall be returned new text begin by the commissioner new text end to the statenew text begin general fundnew text end .

Subd. 2.

Requirements.

(a) deleted text begin In orderdeleted text end To receive state aid payments under this
section, a charter school in its first three years of operation must submit new text begin to the commissioner
new text end a school calendar in the form and manner requested by the deleted text begin departmentdeleted text end new text begin commissionernew text end and
a quarterly report deleted text begin to the Department of Educationdeleted text end . The new text begin quarterly new text end report must list each
student by grade, show the student's start and end dates, if deleted text begin anydeleted text end new text begin applicablenew text end , deleted text begin with the charter
school,
deleted text end andnew text begin ,new text end for any student participating in a learning year program, the report must list the
hours and times of learning year activities. The new text begin charter school must submit the new text end report deleted text begin must
be submitted
deleted text end new text begin to the commissioner new text end not more than two weeks after the end of the calendar
quarter deleted text begin to the departmentdeleted text end . The deleted text begin departmentdeleted text end new text begin commissionernew text end must develop a Web-based
reporting form for charter schools to use when submitting new text begin quarterly new text end enrollment reports.

new text begin (b) To receive state aid payments under this section,new text end a charter school in its fourth and
subsequent year of operation must submit a school calendar and enrollment information
to the deleted text begin departmentdeleted text end new text begin commissionernew text end in the form and manner requested by the deleted text begin department
deleted text end new text begin commissionernew text end .

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must have a valid, signed contract under section 124E.10,
subdivision 1, on file deleted text begin atdeleted text end new text begin withnew text end the deleted text begin Department of Educationdeleted text end new text begin commissionernew text end at least 15 days
deleted text begin prior todeleted text end new text begin beforenew text end the date of first payment of state aid for the fiscal year.

deleted text begin (c)deleted text end new text begin (d) The commissioner shall computenew text end state aid entitlements deleted text begin shall be computed
deleted text end for a charter school only for the portion of a school year for which it has a valid, signed
contract under section 124E.10, subdivision 1.

Subd. 3.

Aid reductions.

(a) The commissioner may reduce a charter school's
state aid under section 127A.42 or 127A.43 if the charter school board fails to correct a
violation under this chapter.

(b) The commissioner may reduce a charter school's state aid by an amount not
to exceed 60 percent of the charter school's basic revenue for the period of time deleted text begin thatdeleted text end a
deleted text begin violation ofdeleted text end law deleted text begin occursdeleted text end new text begin was violatednew text end .

Subd. 4.

Aid withholding.

(a) If a charter school fails to comply with the
commissioner's directive to return, for cause, federal or state funds administered by the
department, the commissioner may withhold an amount of state aid sufficient to satisfy
the directive.

(b) Ifdeleted text begin , within the timeline under section 471.425,deleted text end new text begin after receiving an undisputed
invoice for goods and services,
new text end a charter school fails to pay the state of Minnesota, a school
district, intermediate school district, or service cooperative deleted text begin after receiving an undisputed
invoice for goods and services
deleted text end new text begin within the timeline under section 471.425new text end , the commissioner
may withhold an amount of state aid sufficient to satisfy the claim and shall distribute the
withheld aid to the interested state agency, school district, intermediate school district, or
service cooperative. An interested state agency, school district, intermediate school district,
or education cooperative shall notify the commissioner when a charter school fails to pay
an undisputed invoice within 75 business days of when it received the original invoice.

Sec. 17.

Minnesota Statutes 2015 Supplement, section 124E.26, is amended to read:


124E.26 USE OF STATE MONEY.

deleted text begin Money received from the state may not be useddeleted text end new text begin A charter school may not use state
money
new text end to purchase land or buildings. The new text begin charter new text end school may own land and buildings if
obtained through nonstate sources.

Sec. 18. new text begin SUPERSEDING ACTS.
new text end

new text begin Any amendments or repeals enacted in the 2016 session of the legislature to sections
also amended or repealed in this act supersede the amendments in this act regardless of
order of enactment.
new text end