1.1 	A bill for an act
1.2 	relating to education; allowing charter school
1.3 	students to participate in extracurricular activities
1.4 	in their resident school district; amending Minnesota
1.5 	Statutes 2004, sections 123B.36, subdivision 1;
1.6 	123B.49, subdivision 4; 124D.10, subdivision 8.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 123B.36,
1.9 	subdivision 1, is amended to read:
1.10 		Subdivision 1.School boards may require fees.  (a) For
1.11 	purposes of this subdivision, "home school" means a home school
1.12 	as defined in sections 120A.22 and 120A.24 with five or fewer
1.13 	students receiving instruction.
1.14 	(b) A school board is authorized to require payment of fees
1.15 	in the following areas:
1.16 	(1) in any program where the resultant product, in excess
1.17 	of minimum requirements and at the pupil's option, becomes the
1.18 	personal property of the pupil;
1.19 	(2) admission fees or charges for extracurricular
1.20 	activities, where attendance is optional and where the admission
1.21 	fees or charges a student must pay to attend or participate in
1.22 	an extracurricular activity is the same for all students,
1.23 	regardless of whether the student is enrolled in a public or a
1.24 	home school;
1.25 	(3) a security deposit for the return of materials,
1.26 	supplies, or equipment;
2.1 	(4) personal physical education and athletic equipment and
2.2 	apparel, although any pupil may personally provide it if it
2.3 	meets reasonable requirements and standards relating to health
2.4 	and safety established by the board;
2.5 	(5) items of personal use or products that a student has an
2.6 	option to purchase such as student publications, class rings,
2.7 	annuals, and graduation announcements;
2.8 	(6) fees specifically permitted by any other statute,
2.9 	including but not limited to section 171.05, subdivision 2;
2.10 	provided (i) driver education fees do not exceed the actual cost
2.11 	to the school and school district of providing driver education,
2.12 	and (ii) the driver education courses are open to enrollment to
2.13 	persons between the ages of 15 and 18 who reside or attend
2.14 	school in the school district;
2.15 	(7) field trips considered supplementary to a district
2.16 	educational program;
2.17 	(8) any authorized voluntary student health and accident
2.18 	benefit plan;
2.19 	(9) for the use of musical instruments owned or rented by
2.20 	the district, a reasonable rental fee not to exceed either the
2.21 	rental cost to the district or the annual depreciation plus the
2.22 	actual annual maintenance cost for each instrument;
2.23 	(10) transportation of pupils to and from extracurricular
2.24 	activities conducted at locations other than school, where
2.25 	attendance is optional, and transportation of charter school
2.26 	students participating in extracurricular activities in their
2.27 	resident district under section 123B.49, subdivision 4,
2.28 	paragraph (a), which must be charged to the charter school;
2.29 	(11) transportation to and from school of pupils living
2.30 	within two miles from school and all other transportation
2.31 	services not required by law.  If a district charges fees for
2.32 	transportation of pupils, it must establish guidelines for that
2.33 	transportation to ensure that no pupil is denied transportation
2.34 	solely because of inability to pay;
2.35 	(12) motorcycle classroom education courses conducted
2.36 	outside of regular school hours; provided the charge must not
3.1 	exceed the actual cost of these courses to the school district;
3.2 	(13) transportation to and from postsecondary institutions
3.3 	for pupils enrolled under the postsecondary enrollment options
3.4 	program under section 123B.88, subdivision 22.  Fees collected
3.5 	for this service must be reasonable and must be used to reduce
3.6 	the cost of operating the route.  Families who qualify for
3.7 	mileage reimbursement under section 124D.09, subdivision 22, may
3.8 	use their state mileage reimbursement to pay this fee.  If no
3.9 	fee is charged, districts must allocate costs based on the
3.10 	number of pupils riding the route.
3.11 	
EFFECTIVE DATE. This section is effective for the
3.12 	2005-2006 school year and later.

3.13 	Sec. 2. Minnesota Statutes 2004, section 123B.49,
3.14 	subdivision 4, is amended to read:
3.15 		Subd. 4.Board control of extracurricular activities.
 3.16 	(a) The board may take charge of and control all extracurricular
3.17 	activities of the teachers and children of the public schools in
3.18 	the district.  Extracurricular activities means all direct and
3.19 	personal services for pupils for their enjoyment that are
3.20 	managed and operated under the guidance of an adult or staff
3.21 	member.  The board shall allow all resident pupils receiving
3.22 	instruction in a home school as defined in section 123B.36,
3.23 	subdivision 1, paragraph (a), and all resident pupils receiving
3.24 	instruction in a charter school as defined in section 124D.10to
3.25 	be eligible to fully participate in extracurricular activities
3.26 	on the same basis as public school students.enrolled in the
3.27 	district's schools.  A charter school student must give the
3.28 	enrolling charter school and the resident school district at
3.29 	least a 30-day notice of the student's intent to participate in
3.30 	an extracurricular activity in the resident district.  Before a
3.31 	charter school student begins participating in an
3.32 	extracurricular activity in the resident district, the charter
3.33 	school must agree in writing to pay the direct and indirect
3.34 	costs attributable to that student that the district may charge
3.35 	to the charter school under paragraph (f).  A charter school
3.36 	student is not eligible to participate in an extracurricular
4.1 	activity in the resident district if that extracurricular
4.2 	activity is offered by the enrolling charter school or the
4.3 	extracurricular activity is not controlled by the high school
4.4 	league under chapter 128C.  Charter school students
4.5 	participating in extracurricular activities must meet the
4.6 	academic and student conduct requirements of the resident
4.7 	district.  The charter school must:
4.8 	(1) collect the same information that a district collects
4.9 	on a student's eligibility to participate in an extracurricular
4.10 	activity;
4.11 	(2) transmit that information to the district at least ten
4.12 	days before a student begins to participate in the
4.13 	extracurricular activity; and 
4.14 	(3) immediately transmit to the district any additional
4.15 	information affecting the student's eligibility.
4.16 	(b) Extracurricular activities have all of the following
4.17 	characteristics:
4.18 	(1) they are not offered for school credit nor required for
4.19 	graduation;
4.20 	(2) they are generally conducted outside school hours, or
4.21 	if partly during school hours, at times agreed by the
4.22 	participants, and approved by school authorities;
4.23 	(3) the content of the activities is determined primarily
4.24 	by the pupil participants under the guidance of a staff member
4.25 	or other adult.
4.26 	(c) If the board does not take charge of and control
4.27 	extracurricular activities, these activities shall be
4.28 	self-sustaining with all expenses, except direct salary costs
4.29 	and indirect costs of the use of school facilities, met by dues,
4.30 	admissions, or other student fund-raising events.  The general
4.31 	fund must reflect only those salaries directly related to and
4.32 	readily identified with the activity and paid by public funds.
4.33 	Other revenues and expenditures for extracurricular activities
4.34 	must be recorded according to the "Manual of Instruction for
4.35 	Uniform Student Activities Activity Fund Accounting for
4.36 	Minnesota School Districts and Area Vocational-Technical
5.1 	Colleges."  Extracurricular activities not under board control
5.2 	must have an annual financial audit and must also be audited
5.3 	annually for compliance with this section.
5.4 	(d) If the board takes charge of and controls
5.5 	extracurricular activities, any or all costs of these activities
5.6 	may be provided from school revenues and all revenues and
5.7 	expenditures for these activities shall be recorded in the same
5.8 	manner as other revenues and expenditures of the district.
5.9 	(e) If the board takes charge of and controls
5.10 	extracurricular activities, the teachers or pupils in the
5.11 	district must not participate in such activity, nor shall the
5.12 	school name or any allied name be used in connection therewith,
5.13 	except by consent and direction of the board.
5.14 	(f) School districts may charge charter schools their
5.15 	proportional share of the direct and indirect costs of the
5.16 	extracurricular activities that are not covered by student fees
5.17 	under section 123B.36, subdivision 1, ticket revenues,
5.18 	fund-raising efforts, sponsorships or other income generated for
5.19 	those activities for which the charter school is charged.  A
5.20 	district may charge charter school students the same fees it
5.21 	charges enrolled students to participate in an extracurricular
5.22 	activity.  All charges to a charter school and charter school
5.23 	students must be paid when the charter school students are
5.24 	selected to participate in the activity.  A district is not
5.25 	required to provide transportation from the charter school to
5.26 	the resident district for a charter school student who
5.27 	participates in an extracurricular activity in the resident
5.28 	district.
5.29 	
EFFECTIVE DATE. This section is effective for the
5.30 	2005-2006 school year and later.

5.31 	Sec. 3. Minnesota Statutes 2004, section 124D.10,
5.32 	subdivision 8, is amended to read:
5.33 		Subd. 8.State and local requirements.  (a) A charter
5.34 	school shall meet all applicable state and local health and
5.35 	safety requirements.
5.36 	(b) A school sponsored by a school board may be located in
6.1 	any district, unless the school board of the district of the
6.2 	proposed location disapproves by written resolution.
6.3 	(c) A charter school must be nonsectarian in its programs,
6.4 	admission policies, employment practices, and all other
6.5 	operations.  A sponsor may not authorize a charter school or
6.6 	program that is affiliated with a nonpublic sectarian school or
6.7 	a religious institution.
6.8 	(d) Charter schools must not be used as a method of
6.9 	providing education or generating revenue for students who are
6.10 	being homeschooled.
6.11 	(e) The primary focus of a charter school must be to
6.12 	provide a comprehensive program of instruction for at least one
6.13 	grade or age group from five through 18 years of age.
6.14 	Instruction may be provided to people younger than five years
6.15 	and older than 18 years of age.
6.16 	(f) A charter school may not charge tuition.
6.17 	(g) A charter school is subject to and must comply with
6.18 	chapter 363A and section 121A.04.
6.19 	(h) A charter school is subject to and must comply with the
6.20 	Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the
6.21 	Minnesota Public School Fee Law, sections 123B.34 to 123B.39.
6.22 	(i) A charter school is subject to the same financial
6.23 	audits, audit procedures, and audit requirements as a district.
6.24 	Audits must be conducted in compliance with generally accepted
6.25 	governmental auditing standards, the Federal Single Audit Act,
6.26 	if applicable, and section 6.65.  A charter school is subject to
6.27 	and must comply with sections 15.054; 118A.01; 118A.02; 118A.03;
6.28 	118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38;
6.29 	471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3,
6.30 	4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must
6.31 	comply with the requirements of sections 123B.75 to 123B.83,
6.32 	except to the extent deviations are necessary because of the
6.33 	program at the school.  Deviations must be approved by the
6.34 	commissioner.  The Department of Education, state auditor, or
6.35 	legislative auditor may conduct financial, program, or
6.36 	compliance audits.  A charter school determined to be in
7.1 	statutory operating debt under sections 123B.81 to 123B.83 must
7.2 	submit a plan under section 123B.81, subdivision 4.
7.3 	(j) A charter school is a district for the purposes of tort
7.4 	liability under chapter 466.
7.5 	(k) A charter school must comply with sections 13.32;
7.6 	120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3
7.7 	and 5.
7.8 	(l) A charter school is subject to the Pledge of Allegiance
7.9 	requirement under section 121A.11, subdivision 3.
7.10 	(m) A charter school is subject to sections 123B.36,
7.11 	subdivision 1, paragraph (b), clause (10), and 123B.49,
7.12 	subdivision 4, paragraphs (a) and (f), when its students
7.13 	participate in extracurricular activities in their resident
7.14 	district.
7.15 	
EFFECTIVE DATE. This section is effective for the
7.16 	2005-2006 school year and later.