1.1                          A bill for an act 
  1.2             relating to education; modifying provisions relating 
  1.3             to charter schools; amending Minnesota Statutes 1994, 
  1.4             sections 120.064; and 124.248. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 120.064, is 
  1.7   amended to read: 
  1.8      120.064 [OUTCOME-BASED CHARTER SCHOOLS.] 
  1.9      Subdivision 1.  [PURPOSES.] (a) The purpose of this section 
  1.10  is to: 
  1.11     (1) improve pupil learning; 
  1.12     (2) increase learning opportunities for pupils; 
  1.13     (3) encourage the use of different and innovative teaching 
  1.14  methods; 
  1.15     (4) require the measurement of learning outcomes and create 
  1.16  different and innovative forms of measuring outcomes; 
  1.17     (5) establish new forms of accountability for schools; or 
  1.18     (6) create new professional opportunities for teachers, 
  1.19  including the opportunity to be responsible for the learning 
  1.20  program at the school site. 
  1.21     (b) This section does not provide a means to keep open a 
  1.22  school that otherwise would be closed.  Applicants in these 
  1.23  circumstances bear the burden of proving that conversion to an 
  1.24  outcome-based a charter school fulfills a purpose specified in 
  1.25  this subdivision, independent of the school's closing. 
  2.1      Subd. 2.  [APPLICABILITY.] This section applies only to 
  2.2   outcome-based charter schools formed and operated under this 
  2.3   section. 
  2.4      Subd. 3.  [SPONSOR.] A school board, community college, 
  2.5   state university, technical college, or the University of 
  2.6   Minnesota may sponsor one or more outcome-based charter schools. 
  2.7      A school board may authorize sponsor a maximum of five 
  2.8   outcome-based schools ten charter schools if more than 10,000 
  2.9   pupils are enrolled in the district, five charter schools if 
  2.10  enrollment is 5,001 to 10,000, three charter schools if 
  2.11  enrollment is 2,001 to 5,000, and one charter school if 
  2.12  enrollment is 2,000 or less at the time a school is authorized.  
  2.13  A higher education institution may sponsor a maximum of five 
  2.14  charter schools. 
  2.15     No more than a total of 35 outcome-based 60 charter schools 
  2.16  may be authorized.  The state board of education shall advise 
  2.17  potential sponsors when the maximum number of outcome-based 
  2.18  charter schools has been authorized. 
  2.19     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
  2.20  authorize one or more licensed teachers under section 125.05, 
  2.21  subdivision 1, to operate an outcome-based a charter school 
  2.22  subject to approval by the state board of education.  If a 
  2.23  school board elects not to sponsor an outcome-based a charter 
  2.24  school, the applicant may appeal the school board's decision to 
  2.25  the state board of education if two members of the school board 
  2.26  voted to sponsor the school.  If the state board authorizes the 
  2.27  school, the state board shall sponsor the school according to 
  2.28  this section.  The school shall be organized and operated as a 
  2.29  cooperative under chapter 308A or nonprofit corporation under 
  2.30  chapter 317A.  
  2.31     (b) Before the operators may form and operate a school, the 
  2.32  sponsor must file an affidavit with the state board of education 
  2.33  stating its intent to authorize an outcome-based a charter 
  2.34  school.  The affidavit must state the terms and conditions under 
  2.35  which the sponsor would authorize an outcome-based a charter 
  2.36  school.  The state board must approve or disapprove the 
  3.1   sponsor's proposed authorization within 30 days of receipt of 
  3.2   the affidavit.  Failure to obtain state board approval precludes 
  3.3   a sponsor from authorizing the outcome-based charter school that 
  3.4   was the subject of the affidavit.  
  3.5      (c) The operators authorized to organize and operate a 
  3.6   school shall hold an election for members of the school's board 
  3.7   of directors in a timely manner after the school is operating.  
  3.8   Any staff members who are employed at the school, including 
  3.9   teachers providing instruction under a contract with a 
  3.10  cooperative, and all parents of children enrolled in the school 
  3.11  may participate in the election.  Licensed teachers employed at 
  3.12  the school, including teachers providing instruction under a 
  3.13  contract with a cooperative, must be a majority of the members 
  3.14  of the board of directors.  A provisional board may operate 
  3.15  before the election of the school's board of directors.  
  3.16     Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
  3.17  may convert one or more of its existing schools to outcome-based 
  3.18  charter schools under this section if 90 percent of the 
  3.19  full-time teachers at the school sign a petition seeking 
  3.20  conversion.  The conversion must occur at the beginning of an 
  3.21  academic year. 
  3.22     Subd. 5.  [CONTRACT.] The sponsor's authorization for an 
  3.23  outcome-based a charter school shall be in the form of a written 
  3.24  contract signed by the sponsor and the board of directors of the 
  3.25  outcome-based charter school.  The contract for an outcome-based 
  3.26  a charter school shall be in writing and contain at least the 
  3.27  following: 
  3.28     (1) a description of a program that carries out one or more 
  3.29  of the purposes in subdivision 1; 
  3.30     (2) specific outcomes pupils are to achieve under 
  3.31  subdivision 10; 
  3.32     (3) admission policies and procedures; 
  3.33     (4) management and administration of the school; 
  3.34     (5) requirements and procedures for program and financial 
  3.35  audits; 
  3.36     (6) how the school will comply with subdivisions 8, 13, 15, 
  4.1   and 21; 
  4.2      (7) assumption of liability by the outcome-based charter 
  4.3   school; 
  4.4      (8) types and amounts of insurance coverage to be obtained 
  4.5   by the outcome-based charter school; and 
  4.6      (9) the term of the contract, which may be up to three 
  4.7   years. 
  4.8      Subd. 7.  [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 
  4.9   RULES.] A charter school is a public school.  Except as provided 
  4.10  in this section, an outcome-based a charter school is exempt 
  4.11  from all statutes and rules applicable to a school, a school 
  4.12  board, or a school district, although it may elect to comply 
  4.13  with one or more provisions of statutes or rules. 
  4.14     Subd. 8.  [REQUIREMENTS.] (a) An outcome-based A charter 
  4.15  school shall meet all applicable state and local health and 
  4.16  safety requirements. 
  4.17     (b) The If the sponsor is a school district, a charter 
  4.18  school must be located in the sponsoring district, unless 
  4.19  another school board agrees to locate an outcome-based a charter 
  4.20  school sponsored by another district in its boundaries.  If a 
  4.21  school board denies a request to locate within its boundaries an 
  4.22  outcome-based a charter school sponsored by another district, 
  4.23  the sponsoring district may appeal to the state board of 
  4.24  education.  If the state board authorizes the school, the state 
  4.25  board shall sponsor the school.  If the sponsor is a higher 
  4.26  education institution, the sponsor must notify the school 
  4.27  district in which the school is to be located prior to seeking 
  4.28  state board approval for the school. 
  4.29     (c) The A charter school must be nonsectarian in its 
  4.30  programs, admission policies, employment practices, and all 
  4.31  other operations.  A sponsor may not authorize an outcome-based 
  4.32  a charter school or program that is affiliated with a nonpublic 
  4.33  sectarian school or a religious institution. 
  4.34     (d) A charter school must not be affiliated with a home 
  4.35  school as defined in section 120.101, subdivision 4. 
  4.36     (e) The primary focus of the a charter school must be to 
  5.1   provide a comprehensive program of instruction for at least one 
  5.2   grade or age group from five through 18 years of age.  
  5.3   Instruction may be provided to people younger than five years 
  5.4   and older than 18 years of age. 
  5.5      (e) The (f) A charter school may not charge tuition. 
  5.6      (f) The (g) A charter school is subject to and shall comply 
  5.7   with chapter 363 and section 126.21. 
  5.8      (g) The (h) A charter school is subject to and shall comply 
  5.9   with the pupil fair dismissal act, sections 127.26 to 127.39, 
  5.10  and the Minnesota public school fee law, sections 120.71 to 
  5.11  120.76. 
  5.12     (h) The (i) A charter school is subject to the same 
  5.13  financial audits, audit procedures, and audit requirements as a 
  5.14  school district.  The audit must be consistent with the 
  5.15  requirements of sections 121.904 to 121.917, except to the 
  5.16  extent deviations are necessary because of the program at the 
  5.17  school.  The department of education, state auditor, or 
  5.18  legislative auditor may conduct financial, program, or 
  5.19  compliance audits. 
  5.20     (i) The (j) A charter school is a school district for the 
  5.21  purposes of tort liability under chapter 466. 
  5.22     Subd. 9.  [ADMISSION REQUIREMENTS.] The A charter school 
  5.23  may limit admission to: 
  5.24     (1) pupils within an age group or grade level; 
  5.25     (2) people who are eligible to participate in the high 
  5.26  school graduation incentives program under section 126.22; or 
  5.27     (3) residents of a specific geographic area where the 
  5.28  percentage of the population of non-Caucasian people of that 
  5.29  area is greater than the percentage of the non-Caucasian 
  5.30  population in the congressional district in which the geographic 
  5.31  area is located, and as long as the school reflects the racial 
  5.32  and ethnic diversity of the specific area. 
  5.33     The A charter school shall enroll an eligible pupil who 
  5.34  submits a timely application, unless the number of applications 
  5.35  exceeds the capacity of a program, class, grade level, or 
  5.36  building.  In this case, pupils shall be accepted by lot. 
  6.1      The A charter school may not limit admission to pupils on 
  6.2   the basis of intellectual ability, measures of achievement or 
  6.3   aptitude, or athletic ability.  
  6.4      Subd. 10.  [PUPIL PERFORMANCE.] An outcome-based A charter 
  6.5   school must design its programs to at least meet the outcomes 
  6.6   adopted by the state board of education.  In the absence of 
  6.7   state board requirements, the school must meet the outcomes 
  6.8   contained in the contract with the sponsor.  The achievement 
  6.9   levels of the outcomes contained in the contract may exceed the 
  6.10  achievement levels of any outcomes adopted by the state board. 
  6.11     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] The A 
  6.12  charter school shall employ or contract with necessary teachers, 
  6.13  as defined by section 125.03, subdivision 1, who hold valid 
  6.14  licenses to perform the particular service for which they are 
  6.15  employed in the school.  The school may employ necessary 
  6.16  employees who are not required to hold teaching licenses to 
  6.17  perform duties other than teaching and may contract for other 
  6.18  services.  The school may discharge teachers and nonlicensed 
  6.19  employees. 
  6.20     The board of directors also shall decide matters related to 
  6.21  the operation of the school, including budgeting, curriculum and 
  6.22  operating procedures. 
  6.23     Subd. 12.  [PUPILS WITH A DISABILITY.] The A charter school 
  6.24  must comply with sections 120.03 and 120.17 and rules relating 
  6.25  to the education of pupils with a disability as though it were a 
  6.26  school district. 
  6.27     Subd. 13.  [LENGTH OF SCHOOL YEAR.] An outcome-based A 
  6.28  charter school shall provide instruction each year for at least 
  6.29  the number of days required by section 120.101, subdivision 5.  
  6.30  It may provide instruction throughout the year according to 
  6.31  sections 120.59 to 120.67 or 121.585. 
  6.32     Subd. 14.  [REPORTS.] An outcome-based A charter school 
  6.33  must report at least annually to its sponsor and the state board 
  6.34  of education the information required by the sponsor or the 
  6.35  state board.  The reports are public data under chapter 13. 
  6.36     Subd. 15.  [TRANSPORTATION.] (a) By July 1 of each year, a 
  7.1   charter school shall notify the district in which the school is 
  7.2   located and the department of education if it will provide 
  7.3   transportation for pupils enrolled at the school for the fiscal 
  7.4   year. 
  7.5      (b) If a charter school elects to provide transportation 
  7.6   for pupils, the transportation shall be provided by the charter 
  7.7   school within the district in which the charter school is 
  7.8   located.  The state shall pay transportation aid to the charter 
  7.9   school according to section 124.248, subdivision 1a. 
  7.10     For pupils who reside outside the district in which the 
  7.11  charter school is located, the charter school is not required to 
  7.12  provide or pay for transportation between the pupil's residence 
  7.13  and the border of the district in which the charter school is 
  7.14  located.  A parent may be reimbursed by the charter school for 
  7.15  costs of transportation from the pupil's residence to the border 
  7.16  of the district in which the charter school is located if the 
  7.17  pupil is from a family whose income is at or below the poverty 
  7.18  level, as determined by the federal government.  The 
  7.19  reimbursement may not exceed the pupil's actual cost of 
  7.20  transportation or 15 cents per mile traveled, whichever is 
  7.21  less.  Reimbursement may not be paid for more than 250 miles per 
  7.22  week.  
  7.23     At the time a pupil enrolls in a charter school, the 
  7.24  charter school shall provide the parent or guardian with 
  7.25  information regarding the transportation.  
  7.26     (c) If a charter school does not elect to provide 
  7.27  transportation, transportation for pupils enrolled at a the 
  7.28  school shall be provided by the district in which the school is 
  7.29  located, according to sections 120.062, subdivision 9, and 
  7.30  123.39, subdivision 6, for a pupil residing in the same district 
  7.31  in which the outcome-based charter school is located.  
  7.32  Transportation may be provided by the district in which the 
  7.33  school is located, according to sections 120.062, subdivision 9, 
  7.34  and 123.39, subdivision 6, for a pupil residing in a different 
  7.35  district. 
  7.36     Subd. 16.  [LEASED SPACE.] The A charter school may lease 
  8.1   space from a board eligible to be a sponsor or other public or 
  8.2   private nonprofit nonsectarian organization.  If a charter 
  8.3   school is unable to lease appropriate space from an eligible 
  8.4   board or other public or private nonprofit nonsectarian 
  8.5   organization, the school may lease space from another 
  8.6   nonsectarian organization if the department of education, in 
  8.7   consultation with the department of administration, approves the 
  8.8   lease.  If the school is unable to lease appropriate space from 
  8.9   public or private nonsectarian organizations, the school may 
  8.10  lease space from a sectarian organization if the leased space is 
  8.11  constructed as a school facility and the department of 
  8.12  education, in consultation with the department of 
  8.13  administration, approves the lease. 
  8.14     Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
  8.15  charter school before the applicant has secured its space, 
  8.16  equipment, facilities, and personnel if the applicant indicates 
  8.17  the authority is necessary for it to raise working capital.  A 
  8.18  sponsor may not authorize a school before the state board of 
  8.19  education has approved the authorization. 
  8.20     Subd. 18.  [DISSEMINATE INFORMATION.] The sponsor, the 
  8.21  operators, and the department of education must disseminate 
  8.22  information to the public on how to form and operate an 
  8.23  outcome-based a charter school and how to utilize the offerings 
  8.24  of an outcome-based a charter school.  Particular groups to be 
  8.25  targeted include low-income families and communities, and 
  8.26  students of color. 
  8.27     Subd. 19.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
  8.28  teacher employed by a school district makes a written request 
  8.29  for an extended leave of absence to teach at an outcome-based a 
  8.30  charter school, the school district must grant the leave.  The 
  8.31  school district must grant a leave for any number of years 
  8.32  requested by the teacher, and must extend the leave at the 
  8.33  teacher's request. The school district may require that the 
  8.34  request for a leave or extension of leave be made up to 90 days 
  8.35  before the teacher would otherwise have to report for duty.  
  8.36  Except as otherwise provided in this subdivision and except for 
  9.1   section 125.60, subdivision 6a, the leave is governed by section 
  9.2   125.60, including, but not limited to, reinstatement, notice of 
  9.3   intention to return, seniority, salary, and insurance. 
  9.4      During a leave, the teacher may continue to aggregate 
  9.5   benefits and credits in the teachers' retirement association 
  9.6   account by paying both the employer and employee contributions 
  9.7   based upon the annual salary of the teacher for the last full 
  9.8   pay period before the leave began.  The retirement association 
  9.9   may impose reasonable requirements to efficiently administer 
  9.10  this subdivision. 
  9.11     Subd. 20.  [COLLECTIVE BARGAINING.] Employees of the board 
  9.12  of directors of the a charter school may, if otherwise eligible, 
  9.13  organize under chapter 179A and comply with its provisions.  The 
  9.14  board of directors of the a charter school is a public employer, 
  9.15  for the purposes of chapter 179A, upon formation of one or more 
  9.16  bargaining units at the school.  Bargaining units at the school 
  9.17  are separate from any other units. 
  9.18     Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
  9.19  duration of the contract with a sponsor shall be for the term 
  9.20  contained in the contract according to subdivision 5.  The 
  9.21  sponsor may or may not renew a contract at the end of the term 
  9.22  for any ground listed in paragraph (b).  A sponsor may 
  9.23  unilaterally terminate a contract during the term of the 
  9.24  contract for any ground listed in paragraph (b).  At least 60 
  9.25  days before not renewing or terminating a contract, the sponsor 
  9.26  shall notify the board of directors of the charter school of the 
  9.27  proposed action in writing.  The notice shall state the grounds 
  9.28  for the proposed action in reasonable detail and that the 
  9.29  charter school's board of directors may request in writing an 
  9.30  informal hearing before the sponsor within 14 days of receiving 
  9.31  notice of nonrenewal or termination of the contract.  Failure by 
  9.32  the board of directors to make a written request for a hearing 
  9.33  within the 14-day period shall be treated as acquiescence to the 
  9.34  proposed action.  Upon receiving a timely written request for a 
  9.35  hearing, the sponsor shall give reasonable notice to the charter 
  9.36  school's board of directors of the hearing date.  The sponsor 
 10.1   shall conduct an informal hearing before taking final action.  
 10.2   The sponsor shall take final action to renew or not renew a 
 10.3   contract by the last day of classes in the school year.  If the 
 10.4   sponsor is a local school board, the school's board of directors 
 10.5   may appeal the sponsor's decision to the state board of 
 10.6   education.  
 10.7      (b) A contract may be terminated or not renewed upon any of 
 10.8   the following grounds: 
 10.9      (1) failure to meet the requirements for pupil performance 
 10.10  contained in the contract; 
 10.11     (2) failure to meet generally accepted standards of fiscal 
 10.12  management; 
 10.13     (3) for violations of law; or 
 10.14     (4) other good cause shown. 
 10.15     If a contract is terminated or not renewed, the school 
 10.16  shall be dissolved according to the applicable provisions of 
 10.17  chapter 308A or 317A. 
 10.18     Subd. 22.  [PUPIL ENROLLMENT.] If a contract is not renewed 
 10.19  or is terminated according to subdivision 21, a pupil who 
 10.20  attended the school, siblings of the pupil, or another pupil who 
 10.21  resides in the same place as the pupil may enroll in the 
 10.22  resident district or may submit an application to a nonresident 
 10.23  district according to section 120.062 at any time.  Applications 
 10.24  and notices required by section 120.062 shall be processed and 
 10.25  provided in a prompt manner.  The application and notice 
 10.26  deadlines in section 120.062 do not apply under these 
 10.27  circumstances. 
 10.28     Subd. 23.  [GENERAL AUTHORITY.] The board of directors 
 10.29  of an outcome-based a charter school may sue and be sued.  The 
 10.30  board may not levy taxes or issue bonds.  A charter school is an 
 10.31  instrumentality of a governmental unit for the purposes of a 
 10.32  joint powers agreement under section 471.59. 
 10.33     Subd. 24.  [IMMUNITY.] The state board of education, 
 10.34  members of the state board, a sponsor, members of the board of a 
 10.35  sponsor in their official capacity, and employees of a sponsor 
 10.36  are immune from civil or criminal liability with respect to all 
 11.1   activities related to an outcome-based a charter school they 
 11.2   approve or sponsor.  The board of directors shall obtain at 
 11.3   least the amount of and types of insurance required by the 
 11.4   contract, according to subdivision 5. 
 11.5      Subd. 25.  [OTHER REVENUE.] In addition to funding provided 
 11.6   in this section, revenue for a charter school shall be according 
 11.7   to section 124.248. 
 11.8      Sec. 2.  Minnesota Statutes 1994, section 124.248, is 
 11.9   amended to read: 
 11.10     124.248 [REVENUE FOR AN OUTCOME-BASED A CHARTER SCHOOL.] 
 11.11     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 11.12  education revenue shall be paid to an outcome-based a charter 
 11.13  school as though it were a school district.  The general 
 11.14  education revenue for each pupil unit is the state average 
 11.15  general education revenue per pupil unit, calculated without 
 11.16  compensatory revenue, plus compensatory revenue as though the 
 11.17  school were a school district. 
 11.18     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 11.19  shall be paid to a charter school that provides transportation 
 11.20  services according to section 120.064, subdivision 15, as though 
 11.21  it were a school district.  Transportation aid shall equal 
 11.22  transportation revenue.  
 11.23     (a) For the first two years that a charter school is 
 11.24  providing transportation services, the regular transportation 
 11.25  allowance for the charter school shall be equal to the regular 
 11.26  transportation allowance for the school district in which the 
 11.27  charter school is located.  For the third year of transportation 
 11.28  services and later fiscal years, the predicted base cost for the 
 11.29  charter school shall be equal to the predicted base cost for the 
 11.30  school district in which the charter school is located.  
 11.31     (b) For the first two years that a charter school is 
 11.32  providing transportation services, the nonregular transportation 
 11.33  revenue equals the charter school's actual cost in the current 
 11.34  school year for nonregular transportation services, minus the 
 11.35  amount of regular transportation revenue attributable to FTE's 
 11.36  in the handicapped category in the current school year.  For the 
 12.1   third year of transportation services and later fiscal years, 
 12.2   the nonregular transportation revenue shall be computed 
 12.3   according to section 124.225, subdivision 7d, paragraph (b).  
 12.4      Subd. 2.  [CAPITAL EXPENDITURE EQUIPMENT REVENUE.] (a) 
 12.5   Capital expenditure equipment aid and capital expenditure 
 12.6   facilities aid shall be paid to an outcome-based a charter 
 12.7   school according to section 124.245, subdivision 6, as though it 
 12.8   were a school district. 
 12.9      (b) Capital expenditure equipment aid shall equal capital 
 12.10  expenditure equipment revenue.  Notwithstanding section 124.244, 
 12.11  subdivision 4, an outcome-based a charter school may use the 
 12.12  revenue for any purpose related to the school. 
 12.13     (c) Capital expenditure facilities aid shall equal capital 
 12.14  expenditure facilities revenue.  To compute capital expenditure 
 12.15  facilities aid according to section 124.245, subdivision 6, 
 12.16  paragraph (b), the capital expenditure facilities revenue for a 
 12.17  charter school equals $128 times the number of pupil units.  
 12.18  Notwithstanding section 124.243, a charter school is not 
 12.19  required to adopt a capital expenditure facilities program and 
 12.20  may use capital expenditure facilities revenue for any capital 
 12.21  facilities purpose related to the school. 
 12.22     Subd. 3.  [SPECIAL EDUCATION AID.] Special education aid 
 12.23  shall be paid to an outcome-based a charter school according to 
 12.24  section 124.32 as though it were a school district.  The charter 
 12.25  school may charge tuition to the district of residence as 
 12.26  provided in section 120.17, subdivision 4.  The outcome-based 
 12.27  charter school shall allocate its special education levy 
 12.28  equalization revenue to the resident districts of the pupils 
 12.29  attending the outcome-based charter school as though it were a 
 12.30  cooperative, as provided in section 124.321, subdivision 2, 
 12.31  paragraph (a), clause (1).  The districts of residence shall 
 12.32  levy as though they were participating in a cooperative, as 
 12.33  provided in section 124.321, subdivision 3. 
 12.34     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) An 
 12.35  outcome-based A charter school is eligible to receive other 
 12.36  aids, grants, and revenue according to chapters 120 to 129, as 
 13.1   though it were a school district except that, notwithstanding 
 13.2   section 124.195, subdivision 3, the payments shall be of an 
 13.3   equal amount on each of the 23 payment dates unless an 
 13.4   outcome-based a charter school is in its first year of operation 
 13.5   in which case it shall receive on its first payment date 15 
 13.6   percent of its cumulative amount guaranteed for the year and 22 
 13.7   payments of an equal amount thereafter the sum of which shall be 
 13.8   85 percent of the cumulative amount guaranteed.  However, it may 
 13.9   not receive aid, a grant, or revenue if a levy is required to 
 13.10  obtain the money, except as otherwise provided in this section.  
 13.11  Federal aid received by the state must be paid to the school, if 
 13.12  it qualifies for the aid as though it were a school district.  A 
 13.13  charter school may apply for and directly receive federal grant 
 13.14  money. 
 13.15     (b) Any revenue received from any source, other than 
 13.16  revenue that is specifically allowed for operational, 
 13.17  maintenance, capital facilities revenue under paragraph (c), and 
 13.18  capital expenditure equipment costs under this section, and 
 13.19  federal grant money may be used only for the planning and 
 13.20  operational start-up costs of an outcome-based a charter 
 13.21  school.  Any unexpended revenue from any source under this 
 13.22  paragraph must be returned to that revenue source or conveyed to 
 13.23  the sponsoring school district, at the discretion of the revenue 
 13.24  source. 
 13.25     (c) An outcome-based In addition to capital expenditure 
 13.26  facilities revenue under subdivision 2, a charter school may 
 13.27  receive money from any source for capital facilities needs.  Any 
 13.28  unexpended capital facilities revenue must be reserved and shall 
 13.29  be expended only for future capital facilities purposes. 
 13.30     Subd. 5.  [USE OF STATE MONEY.] Money received from the 
 13.31  state may not be used to purchase land or buildings.  The school 
 13.32  may own land and buildings if obtained through nonstate sources.