1.1                          A bill for an act 
  1.2             relating to education; imposing a fiduciary 
  1.3             responsibility on the sponsor of a charter school; 
  1.4             requesting the legislative auditor to study and report 
  1.5             on charter school operations; amending Minnesota 
  1.6             Statutes 2000, section 124D.10, subdivision 25.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 124D.10, 
  1.9   subdivision 25, is amended to read: 
  1.10     Subd. 25.  [EXTENT OF SPECIFIC LEGAL AUTHORITY.] (a) The 
  1.11  board of directors of a charter school may sue and be sued. 
  1.12     (b) The board may not levy taxes or issue bonds.  
  1.13     (c) The commissioner, a sponsor, members of the board of a 
  1.14  sponsor in their official capacity, and employees of a sponsor 
  1.15  are immune from civil or criminal liability with respect to all 
  1.16  activities related to a charter school they approve or sponsor.  
  1.17  The board of directors shall obtain at least the amount of and 
  1.18  types of insurance required by the contract, according to 
  1.19  subdivision 6.  A charter school sponsor has a fiduciary 
  1.20  responsibility for the employee wages and pensions contributions 
  1.21  attributable to a charter school it sponsors.  This fiduciary 
  1.22  responsibility becomes effective immediately for any new sponsor 
  1.23  of a charter school.  It becomes effective upon renewal of the 
  1.24  charter school contract for any current sponsor.  The sponsor is 
  1.25  immune from civil or criminal liability with respect to all 
  1.26  other activities related to a charter school it approves or 
  2.1   sponsors. 
  2.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.3   following final enactment. 
  2.4      Sec. 2.  [LEGISLATIVE AUDITOR STUDY.] 
  2.5      The legislative audit commission is requested to direct the 
  2.6   legislative auditor to conduct an evaluation of charter schools 
  2.7   established in 1991 and later that examines charter schools': 
  2.8      (1) demographics; 
  2.9      (2) financial history and responsibility; 
  2.10     (3) progress toward attaining educational goals, including 
  2.11  success in achieving student outcomes; 
  2.12     (4) compliance with public reporting obligations, including 
  2.13  annual reporting obligations to the public, local school 
  2.14  districts, and the department of children, families, and 
  2.15  learning; and 
  2.16     (5) compliance with laws, rules and contractual 
  2.17  obligations, including information on teachers' training and 
  2.18  licensure fields, and programs and services provided to students 
  2.19  with disabilities. 
  2.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.21  following final enactment.