HF 4176
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/23/2026 06:24 p.m.
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A bill for an act
relating to education; modifying requirements for site-governed schools; amending
Minnesota Statutes 2024, section 123B.045.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 123B.045, is amended to read:
123B.045 DISTRICT-CREATED SITE-GOVERNED SCHOOLS.
Subdivision 1.
Authority.
(a) A school board may approve site-governed schools under
this section deleted text begin by requesting site-governing school proposals. The request for proposals must
include what types of schools or education innovations the board intends to create.deleted text end new text begin after
reviewing a proposal that includes a site-governed school's agreement and a proposed
memorandum of understanding, if applicable. A proposal is approved when the board enters
into a site-governed school agreement under paragraph (c) and a memorandum of
understanding under paragraph (b), if applicable.new text end A current site may submit a proposal deleted text begin to
create a different model for the sitedeleted text end if 60 percent or more of the teachers at the site support
the proposal. A group of licensed district professionals from one or multiple district sites
may submit a proposal. The group submitting the proposal must include parents or other
community members in the development of the proposal. deleted text begin A proposal may request approval
for a model of a school not included in the request for proposal of the board.deleted text end new text begin Within 60 days
of receiving a proposal, the school board must determine whether to approve, deny, or return
the proposal to the site for further information or development.
new text end
(b) The school board and the applicable bargaining unit representing district employees
must enter into memoranda of understanding specifying how applicable sections of current
contracts will enable the provisions of subdivision 2, paragraph (a), clauses (7) and (8), to
be implementednew text begin , if applicablenew text end .
deleted text begin
(c) Within 60 days of receipt of the application, the school board shall determine whether
to approve, deny, or return the application to the applicants for further information or
development.
deleted text end
deleted text begin (d) Upon approval of the proposal,deleted text end new text begin (c)new text end An agreement between the district and deleted text begin thedeleted text end new text begin one
or morenew text end site deleted text begin council shall be developed identifying the powers and duties delegated to the
site and outlining the details of the proposal including the provisions of subdivisions 2, 3,
and 5.deleted text end new text begin councils must:
new text end
new text begin
(1) identify the autonomies and responsibilities delegated to the school site, in addition
to the autonomies and responsibilities assigned to the school site under subdivision 2;
new text end
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(2) identify the specific services provided by the district for the site under subdivision
3, and the district's expectations in supporting the school site;
new text end
new text begin
(3) identify any administrative fees due to the district under subdivision 3;
new text end
new text begin
(4) define clear performance expectations for the school site consistent with subdivision
5; and
new text end
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(5) provide clear reporting and dispute resolution mechanisms.
new text end
new text begin
(d) A community nonprofit organization supporting an effective partnership between
the district and site council may be a party to the agreement.
new text end
new text begin (e)new text end Any powers or duties not specifically delegated to the school site in the agreement
remains with the school board.
new text begin
(f) An initial agreement between the district and site council must have a term of three
years. If the school site substantially meets specified performance expectations, the agreement
is automatically renewed for five years.
new text end
new text begin
(g) The parties to a site-governed school agreement have all available remedies at law
and equity in addition to the rights and remedies contained in this section.
new text end
Subd. 2.
Roles and responsibilities of site-governed schools.
(a) Site-governed schools
approved by the school board have the following autonomy and responsibilities at the
discretion of the site:
(1) to create the site-governing council of the school. The council shall include teachers,
administratorsnew text begin including the principalnew text end , parents, students if appropriate, community members,
and other representatives of the community as determined by the site-governing council.
Teachers may comprise a majority of the site-governing council at the option of a majority
of the teachers at the site. The number of members on the site-governing councilnew text begin , the manner
in which members are selected,new text end and the composition shall be included in the deleted text begin proposaldeleted text end new text begin
agreementnew text end approved by the school board;
(2) to determine the leadership model for the site including: selecting a principal,
operating as a teacher professional practices model with school leadership functions
performed by one or more teachers or administrators at the school or other model determined
by the site;
(3) to determine the budget for the site and the allocation and expenditure of the revenue
based on provisions of subdivision 3;
(4) to determine the learning model and organization of the school consistent with the
application approved by the school board;
(5) to select and develop its curriculum and determine formative and summative
assessment practices;
(6) to set policies for the site including student promotion, attendance, discipline,
graduation requirements which may exceed the school board standards, and other such rules
as approved by the school board consistent with the mission, goals, and learning program
of the school site;
(7) to determine the length of the school day and year and employee work rules covered
by the terms and conditions of the employment contract;
(8) to select teachers and other staff consistent with current law and collective bargaining
agreements and memoranda of understanding provided for in subdivision 1, paragraph (b).
deleted text begin At least 70 percent of the teachers must be selected by the site prior to final approval of the
agreement. Prior to requesting the district to employ staff not currently employed by the
district, the site must first select current district staff including those on requested and
unrequested leave as provided for indeleted text end new text begin All school staff must be selected by mutual consent
of both the site-governing council and the staff member. The selection process for staff on
requested and unrequested leave of absence undernew text end sections 122A.40 and 122A.41new text begin applies
to site-governed schools to the same extent as other schools in the districtnew text end . The school board
shall be the legal employer of all staff at the site and all teachers and other staff members
of the applicable bargaining units. Teachers and other employees may be required to sign
an individual work agreement with the site-governing council committing themselves to
the mission and learning program of the school and the requirements of the site-governing
council; and
(9) to fulfill other provisions as agreed to by the district and site-governing council.
(b) If a self-governed school created under this section is supervised by a principal, that
principal must be licensed, consistent with section 123B.147, subdivision 2.
Subd. 2a.
Teacher-governed schools; grants.
(a) Consistent with subdivision 1
authorizing a school board to agree to assign certain autonomies and responsibilities to a
school site, and subject to a memorandum of understanding between the school board and
the exclusive representative of the teachers, a grant program is established to encourage
licensed teachers employed at a school site to explore and develop organizational models
for teaching and learning; provide curriculum and corresponding formative, interim, and
summative assessments; measure and evaluate teacher performance; assign teaching positions
and restructure instructional work; provide professional development to support teachers
restructuring their work; allocate revenue; assert autonomy and leadership; and pursue other
such policies, strategies, and activities for creating teacher-governed schools.
(b) The commissioner, after receiving documentation of the approved agreement between
the parties under subdivision 1, paragraph deleted text begin (d)deleted text end new text begin (c)new text end , shall award grants on a first-come,
first-served basis until appropriated funds are expended according to this paragraph:
(1) a planning grant of up to $50,000 during the first year of the parties' agreement; and
(2) an implementation grant of up to $100,000 during each of the next two years of the
parties' agreement.
(c) A grant recipient that terminates an agreement before the end of a school year must
return a pro rata portion of the grant to the commissioner, the amount of which the
commissioner must determine based upon the number of school days remaining in the school
year after the agreement is terminated. Grant recipients are encouraged to seek matching
funds or in-kind contributions from nonstate sources to supplement the grant awards.
(d) A school district receiving a grant must transmit to the commissioner in an electronic
format and post on its website by the end of the school year readily accessible information
about recommended best practices based on its experience and progress under this section.
The commissioner must make information about these recommended best practices readily
available to interested districts and schools throughout Minnesota.
Subd. 3.
Revenue to self-governed school.
(a) The revenue that shall be allocated by
the site includes the general education revenue generated by the students at the site from
state, local, and private sources, referendum revenue, federal revenue from the Elementary
and Secondary Education Act, Individuals with Disabilities Education Act, Carl Perkins
Act, and other federal programs deleted text begin as agreed to bydeleted text end new text begin in accordance with the agreement betweennew text end
the school board and site council.
(b) The district may retain an administrative fee for managing the federal programs,
private revenues, and general administrative functions including school board, superintendent,
district legal counsel, finance, accountability and self-governed school contract oversight,
facilities maintenance, districtwide special education programs, and other such services deleted text begin as
agreed to bydeleted text end new text begin in accordance with the agreement betweennew text end the sitenew text begin councilnew text end and school board.
deleted text begin The administrative fee shall be included in the agreement.
deleted text end
(c) As part of the agreement, the district may provide specific services for the site and
may specify the amount to be paid for each service and retain the revenues for that amount.
The formula or procedures for determining the amount of revenue to be allocated to the site
each year shall be consistent with this subdivision and incorporated in the site budget
annually following a timeline and process that is included in the agreement with the school
board. The site is responsible for allocating revenue for all staff at the site and for the other
provisions of the agreement with the district board.
(d) All unspent revenue shall be carried over to following years for the sole use of the
site.
Subd. 4.
Exemption from statutes and rules.
Except as outlined in this section,
site-governed schools established under this section are exempt from and subject to the
same laws and rules as are chartered schools under chapter 124E, except that the schools
shall be subject to chapters 13, 13D, and 179A, and sections 122A.40, 122A.41, 122A.50,
and 122A.51.
Subd. 5.
Performance standards.
(a) The school board and the deleted text begin sitedeleted text end new text begin site-governingnew text end
council shall include in the agreement performance standards and expectations that shall
include at least the following:
(1) student achievement targets on multiple indicators including either a growth model
or value-added growth model;
(2) the criteria and process to be followed if it is determined that the site failed to comply
with district oversight and accountability requirements as outlined in the agreement; and
(3) other performance provisions as agreed to.
(b) All agreements shall be filed with the commissioner. deleted text begin The initial agreement shall be
for up to three years, shall be reviewed annually, and may be renewed by the district board
for additional terms of up to five years based on the performance of the school.
deleted text end
Subd. 6.
Board termination of self-governed school authority.
(a) The district board
may terminate the agreement for new text begin only new text end one or more of the following reasons:
(1) failure of the site to meet the provisions specified in the agreement in subdivision 5new text begin
following at least two full school years of the school operating under the agreementnew text end ;
(2) violations of law; or
(3) deleted text begin other good cause showndeleted text end new text begin imminent risk of irreparable harm to students at the schoolnew text end .
(b) Site-governed schools that are terminated or not renewed deleted text begin for reasons other than causedeleted text end
may request to convert to charter school status as provided for in chapter 124E and, if
chartered by the board, shall become the owner of all materials, supplies, and equipment
purchased during the period the school was a site-governed school.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end