HF 1303

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; authorizing the commissioner of
education to approve up to five charitable
organizations as charter school sponsors; amending
Minnesota Statutes 2004, section 124D.10, subdivision
3.

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

Section 1.

Minnesota Statutes 2004, section 124D.10,
subdivision 3, is amended to read:

Subd. 3.

Sponsor.

(a) A school board; intermediate
school district school board; education district organized under
sections 123A.15 to 123A.19; charitable organization under
section 501(c)(3) of the Internal Revenue Code of 1986 that is a
member of the Minnesota Council of Nonprofits or the Minnesota
Council on Foundations, registered with the attorney general's
office, and reports an end-of-year fund balance of at least
$2,000,000; Minnesota private college that grants two- or
four-year degrees and is registered with the Higher Education
Services Office under chapter 136A; community college, state
university, or technical college, governed by the Board of
Trustees of the Minnesota State Colleges and Universities; or
the University of Minnesota may sponsor one or more charter
schools.

(b) A nonprofit corporation subject to chapter 317A,
described in section 317A.905, and exempt from federal income
tax under section 501(c)(6) of the Internal Revenue Code of
1986, may sponsor one or more charter schools if the charter
school has operated for at least three years under a different
sponsor and if the nonprofit corporation has existed for at
least 25 years.

new text begin (c) The commissioner of education may approve up to five
charitable organizations under section 501(c)(3) of the Internal
Revenue Code of 1986 that sponsor charter schools as their
principle charitable purpose. Eligible charitable organizations
interested in being approved as a sponsor under this paragraph
must submit a proposal to the commissioner that includes:
new text end

new text begin (1) the articles, bylaws, and initial membership of the
charitable organization's board of directors;
new text end

new text begin (2) financial information consistent with section 309.53,
subdivision 3;
new text end

new text begin (3) a description of how the charitable organization plans
to realize its principle charitable purpose; and
new text end

new text begin (4) other information requested by the commissioner.
new text end

new text begin A charitable organization that is approved as a sponsor
under this paragraph annually must report to the commissioner in
the form and manner the commissioner determines. The report
must describe the charter schools authorized by the charitable
organization, the effectiveness of those charter schools in
promoting student achievement, and the governance structure of
those charter schools, and also must include other information
requested by the commissioner. An approved charitable
organization may sponsor one or more charter schools. The
commissioner may withdraw the approval of a charitable
organization to sponsor a charter school under this paragraph if
the commissioner determines that the charitable organization
fails to meet generally accepted standards of fiscal management,
violates the law, or shows other good cause. The commissioner's
determination is final. When the commissioner withdraws the
approval of a charitable organization to sponsor a charter
school, the commissioner may approve the decision of a different
eligible sponsor to authorize the charter school or may apply
subdivision 24 governing student enrollment when a charter
school contract is not renewed or terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end