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Minnesota Legislature

Office of the Revisor of Statutes

HF 1460

as introduced - 87th Legislature (2011 - 2012) Posted on 04/14/2011 10:58am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/14/2011

Current Version - as introduced

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A bill for an act
relating to education finance; creating an option for a school district-sponsored
collaborative charter school designed to enhance student achievement; proposing
coding for new law in Minnesota Statutes, chapter 124D.

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

Section 1.

new text begin [124D.105] COLLABORATIVE CHARTER SCHOOL.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The board of directors of an independent or special school
district may create and sponsor a collaborative charter school according to the provisions
of this section. The board is subject to the requirements for charter school authorizers
under section 124D.10.
new text end

new text begin Subd. 2. new text end

new text begin Formation of school. new text end

new text begin (a) A school board intending to form a collaborative
charter school must adopt a written resolution authorizing the formation of the school.
The school may be formed either by: (1) adopting a memorandum of understanding from
the exclusive bargaining representative of the district's teachers regarding the employment
status of teachers at the collaborative charter school; or (2) contracting with a party
otherwise eligible to be a sponsor or a charter school under section 124D.10. A district
may form a voluntary collaborative partnership with a charter school that is currently
authorized by another authorizer.
new text end

new text begin (b) The school must be organized and operated as a cooperative under chapter 308A
or nonprofit corporation under chapter 317A and the provisions under the applicable
chapter shall apply to the school except as provided in this section. Notwithstanding
sections 465.717 and 465.719, a school district subject to this section may create a
corporation for the purpose of establishing a collaborative charter school.
new text end

new text begin Subd. 3. new text end

new text begin Conflict of interest. new text end

new text begin (a) An individual is prohibited from serving as
a member of the collaborative charter school board of directors if the individual, an
immediate family member, or the individual's partner is an owner, employee, or agent of
or a contractor with a for-profit or nonprofit entity with whom the collaborative charter
school contracts, directly or indirectly, for professional services, goods, or facilities. A
violation of this prohibition renders a contract voidable at the option of the commissioner
or the collaborative charter school board of directors. A member of a collaborative
charter school board of directors who violates this prohibition is individually liable to the
collaborative charter school for any damage caused by the violation.
new text end

new text begin (b) No member of the board of directors, employee, officer, or agent of a
collaborative charter school shall participate in selecting, awarding, or administering a
contract if a conflict of interest exists. A conflict exists when:
new text end

new text begin (1) the board member, employee, officer, or agent;
new text end

new text begin (2) the immediate family of the board member, employee, officer, or agent;
new text end

new text begin (3) a partner of the board member, employee, officer, or agent; or
new text end

new text begin (4) an organization that employs, or is about to employ, any individual in clauses (1)
to (3), has a financial or other interest in the entity with which the collaborative charter
school is contracting. A violation of this prohibition renders the contract void.
new text end

new text begin (c) Any employee, agent, or board member of the authorizer who participates in
the initial review, approval, ongoing oversight, evaluation, or the collaborative charter
renewal or nonrenewal process or decision is ineligible to serve on the board of directors
of a school chartered by that authorizer.
new text end

new text begin (d) The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the collaborative charter school who also
serves as a member of the board of directors.
new text end

new text begin (e) The conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a collaborative charter school through a cooperative
formed under chapter 308A when the teacher also serves on the collaborative charter
school board of directors.
new text end

new text begin Subd. 4. new text end

new text begin Conversion of existing schools. new text end

new text begin (a) A board of an independent or special
school district may convert one or more of its existing schools to collaborative charter
schools under this section if 60 percent of the full-time teachers at the school sign a petition
seeking conversion. The conversion must occur at the beginning of an academic year.
new text end

new text begin (b) The board of directors of a school district that is an approved charter school
authorizer must not require a charter school that it has authorized to become a collaborative
charter school under this section or otherwise condition the charter school's reauthorization
on the provisions of this section.
new text end

new text begin Subd. 5. new text end

new text begin Charter contract. new text end

new text begin The authorization for a collaborative charter school
must be in the form of a written contract signed by the authorizer and the board of
directors of the collaborative charter school. The contract must be completed within 45
business days of the adoption of the school board resolution. The authorizer shall submit
to the commissioner a copy of the signed collaborative charter contract within ten business
days of its execution. The contract for a collaborative charter school must be in writing
and contain at least the following:
new text end

new text begin (1) a declaration of the purposes that the school intends to carry out and how the
school will report its implementation of those purposes;
new text end

new text begin (2) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;
new text end

new text begin (3) a statement of admission policies and procedures;
new text end

new text begin (4) a governance, management, and administration plan for the school;
new text end

new text begin (5) signed agreements from collaborative charter school board members to comply
with all federal and state laws governing organizational, programmatic, and financial
requirements applicable to collaborative charter schools;
new text end

new text begin (6) the criteria, processes, and procedures that the authorizer will use for ongoing
oversight of operational, financial, and academic performance;
new text end

new text begin (7) the performance evaluation that is a prerequisite for reviewing a charter contract
under subdivision 25;
new text end

new text begin (8) types and amounts of insurance liability coverage to be obtained by the
collaborative charter school;
new text end

new text begin (9) the term of the contract, which may be up to three years for an initial contract
plus an additional preoperational planning year, and up to five years for a renewed contract
if warranted by the school's academic, financial, and operational performance;
new text end

new text begin (10) how the board of directors or the operators of the collaborative charter school
will provide special instruction and services for children with a disability under sections
125A.03 to 125A.24 and 125A.65, and a description of the financial parameters within
which the collaborative charter school will operate to provide the special instruction
and services to children with a disability;
new text end

new text begin (11) the process and criteria the authorizer intends to use to monitor and evaluate
the fiscal and student performance of the collaborative charter school, consistent with
subdivision 25; and
new text end

new text begin (12) the plan for an orderly closing of the school under chapter 308A or 317A,
if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
the contract, and that includes establishing the responsibilities of the school board of
directors and the authorizer and notifying the commissioner, authorizer, school district in
which the collaborative charter school is located, and parents of enrolled students about
the closure, the transfer of student records to students' resident districts, and procedures
for closing financial operations.
new text end

new text begin Subd. 6. new text end

new text begin Location. new text end

new text begin A collaborative charter school must be located within the
geographic boundaries of the sponsoring school district of a collaborative school formed
through a memorandum of understanding.
new text end

new text begin Subd. 7. new text end

new text begin Governance. new text end

new text begin A collaborative charter school formed through a
memorandum of understanding must be governed by a board of directors composed of
at least five members. The collaborative charter school board meetings must comply
with chapter 13D.
new text end

new text begin Subd. 8. new text end

new text begin Governance of collaborative charter school formed under contract.
new text end

new text begin A collaborative charter school formed under contract with a collaborative charter school
authorizer must be governed according to the provisions specified in the contract, and the
meetings of the collaborative charter school board must comply with chapter 13D.
new text end

new text begin Subd. 9. new text end

new text begin Finances. new text end

new text begin A collaborative charter school's pupils must be included in
the school district's count of pupils under chapter 126C. The pupils generate funding in
the same manner as all other pupils in the school district. In addition, a collaborative
charter school qualifies for charter school lease aid and startup aid under section 124D.11,
subdivisions 4 and 8.
new text end

new text begin Subd. 10. new text end

new text begin Audit report. new text end

new text begin (a) The collaborative charter school must submit an audit
report to the commissioner and its authorizer by December 31 each year.
new text end

new text begin (b) The collaborative charter school, with the assistance of the auditor conducting the
audit, must include with the report a copy of all collaborative charter school agreements
for corporate management services. If the entity that provides the professional services
to the collaborative charter school is exempt from taxation under section 501 of the
Internal Revenue Code of 1986, that entity must file with the commissioner and authorizer
by February 15 a copy of the annual return required under section 6033 of the Internal
Revenue Code of 1986.
new text end

new text begin (c) If the commissioner and authorizer receive an audit report indicating that a
material weakness exists in the financial reporting systems of a collaborative charter
school, the collaborative charter school must submit a written report to the commissioner
explaining how the material weakness will be resolved.
new text end

new text begin Subd. 11. new text end

new text begin Length of contract. new text end

new text begin The contract between a sponsoring school board and
a collaborative charter school may not exceed five years. The contract may be renewed at
any time.
new text end

new text begin Subd. 12. new text end

new text begin Contract requirements. new text end

new text begin The contract between the sponsoring school
board and the collaborative charter school must be in writing and must contain at least:
new text end

new text begin (1) a declaration of the school's purpose;
new text end

new text begin (2) a description of the program and its expected student outcomes;
new text end

new text begin (3) a statement of the school's admissions policies and procedures;
new text end

new text begin (4) a description of the governance, management, and administration of the school;
new text end

new text begin (5) signatures from the collaborative charter school board members agreeing to
comply with all federal and state laws governing organizational, programmatic, and
financial requirements applicable to charter schools;
new text end

new text begin (6) requirements for oversight of operational, financial, and academic performance;
new text end

new text begin (7) a description of the performance evaluation used to measure the academic
progress at the school;
new text end

new text begin (8) a description of the services that the collaborative charter school intends to
purchase from the sponsoring school district;
new text end

new text begin (9) a description of how the collaborative charter school will provide special
instruction to students with a disability;
new text end

new text begin (10) a plan to measure the fiscal performance of the school;
new text end

new text begin (11) a plan for the orderly closing of the collaborative charter school if the closure is
a termination for cause, voluntary termination, or for nonrenewal of contract; and
new text end

new text begin (12) a description of the status of teachers at the school.
new text end

new text begin Subd. 13. new text end

new text begin Public status. new text end

new text begin A collaborative charter school is a public school and is part
of the state's system of public education.
new text end

new text begin Subd. 14. new text end

new text begin State and local requirements. new text end

new text begin A collaborative charter school must meet
all of the requirements in section 124D.10, subdivision 8.
new text end

new text begin Subd. 15. new text end

new text begin Aid reduction. new text end

new text begin The commissioner may reduce a collaborative charter
school's state aid under section 127A.42 or 127A.43 if the collaborative charter school
board fails to correct a violation under this section.
new text end

new text begin Subd. 16. new text end

new text begin Aid reduction for violations. new text end

new text begin The commissioner may reduce a
collaborative charter school's state aid by an amount not to exceed 60 percent of the
collaborative charter school's basic revenue for the period of time that a violation of
law occurs.
new text end

new text begin Subd. 17. new text end

new text begin Admission requirements. new text end

new text begin A collaborative charter school may limit
admission to:
new text end

new text begin (1) pupils within an age group or grade level;
new text end

new text begin (2) pupils who are eligible to participate in the graduation incentives program
under section 124D.68;
new text end

new text begin (3) residents of a specific geographic area; or
new text end

new text begin (4) students who previously attended a school restructured under the No Child
Left Behind Act.
new text end

new text begin A collaborative charter school shall enroll an eligible pupil who submits a timely
application, unless the number of applications exceeds the capacity of a program, class,
grade level, or building. In this case, pupils must be accepted by lot. The collaborative
charter school must develop and publish a lottery policy and process that it must use when
accepting pupils by lot. A collaborative charter school shall give preference for enrollment
to a sibling of an enrolled pupil and to a foster child of that pupil's parents and may give
preference for enrolling children of the school's teachers before accepting other pupils
by lot. A collaborative charter school may not limit admission to pupils on the basis
of intellectual ability, measures of achievement or aptitude, or athletic ability and may
not establish any criteria or requirements for admission that are inconsistent with this
subdivision. The collaborative charter school shall not distribute any services or goods of
value to students, parents, or guardians as an inducement, term, or condition of enrolling a
student in a collaborative charter school.
new text end

new text begin Subd. 18. new text end

new text begin Pupil performance. new text end

new text begin A collaborative charter school must design its
programs to at least meet the outcomes adopted by the commissioner for public school
students. In the absence of the commissioner's requirements, the school must meet the
outcomes contained in the contract with the authorizer. The achievement levels of the
outcomes contained in the contract may exceed the achievement levels of any outcomes
adopted by the commissioner for public school students.
new text end

new text begin Subd. 19. new text end

new text begin Employment and other operating matters. new text end

new text begin (a) A collaborative charter
school must employ or contract with necessary teachers, as defined by section 122A.15,
subdivision 1, who hold valid licenses to perform the particular service for which they
are employed in the school. The collaborative charter school's state aid may be reduced
under section 127A.43 if the school employs a teacher who is not appropriately licensed
or approved by the board of teaching. The school may employ necessary employees
who are not required to hold teaching licenses to perform duties other than teaching and
may contract for other services. The school may discharge teachers and nonlicensed
employees. The collaborative charter school board is subject to section 181.932. When
offering employment to a prospective employee, a collaborative charter school must
give that employee a written description of the terms and conditions of employment and
the school's personnel policies.
new text end

new text begin (b) A person without a valid administrator's license may perform administrative,
supervisory, or instructional leadership duties. The board of directors shall establish
qualifications for persons that hold administrative, supervisory, or instructional leadership
roles. The qualifications shall include at least the following areas: instruction and
assessment; human resource and personnel management; financial management; legal and
compliance management; effective communication; and board, authorizer, and community
relationships. The board of directors shall use those qualifications as the basis for job
descriptions, hiring, and performance evaluations of those who hold administrative,
supervisory, or instructional leadership roles. The board of directors and an individual
who does not hold a valid administrative license and who serves in an administrative,
supervisory, or instructional leadership position shall develop a professional development
plan. Documentation of the implementation of the professional development plan of these
persons shall be included in the school's annual report.
new text end

new text begin (c) The board of directors also shall decide matters related to the operation of the
school, including budgeting, curriculum, and operating procedures.
new text end

new text begin Subd. 20. new text end

new text begin Employees. new text end

new text begin A collaborative charter school must employ or contract with
necessary teachers, as defined by section 122A.15, subdivision 1, who hold valid licenses
to perform the particular service for which they are employed. If the collaborative charter
school is formed through a memorandum of understanding, the teachers' employment and
contracts must be in accordance with the memorandum of understanding required under
subdivision 2. The collaborative charter school's state aid may be reduced under section
127A.42 if the school employs a teacher who is not appropriately licensed or approved
by the Board of Teaching. The school may employ necessary employees who are not
required to hold teaching licenses to perform duties other than teaching and may contract
for other services. The school may discharge teachers and nonlicensed employees. A
person without a valid administrator's license may perform administrative, supervisory, or
instructional leadership duties at the collaborative charter school.
new text end

new text begin Subd. 21. new text end

new text begin Operations. new text end

new text begin The board of directors of the collaborative charter
school shall decide matters related to the operation of the school, including budgeting,
curriculum, and operating procedures, subject to the sponsoring agreement and any
adopted memoranda of understanding.
new text end

new text begin Subd. 22. new text end

new text begin Pupils with a disability. new text end

new text begin A collaborative charter school must comply with
sections 125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education
of pupils with a disability as if it were a school district.
new text end

new text begin Subd. 23. new text end

new text begin Length of school year. new text end

new text begin A collaborative charter school must provide
instruction for at least the same amount of time as its sponsoring school district and may
provide instruction throughout the school year according to sections 124D.12 to 124D.127
or 124D.128.
new text end

new text begin Subd. 24. new text end

new text begin Annual public reports. new text end

new text begin A collaborative charter school must publish
an annual report approved by the board of directors. The annual report must at least
include information on school enrollment, student attrition, governance and management,
staffing, finances, academic performance, operational performance, innovative practices
and implementation, and future plans. A collaborative charter school must distribute the
annual report by publication, mail, or electronic means to the commissioner, authorizer,
school employees, and parents and legal guardians of students enrolled in the collaborative
charter school, and must also post the report on the collaborative charter school's official
Web site. The reports are public data under chapter 13.
new text end

new text begin Subd. 25. new text end

new text begin Review and comment. new text end

new text begin (a) The authorizer shall provide a formal written
evaluation of the school's performance before the authorizer renews the charter contract.
The department must review and comment on the authorizer's evaluation process at the
time the authorizer submits its application for approval.
new text end

new text begin (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
performance of the school, and may for this purpose annually assess a collaborative
charter school a fee according to paragraph (c). The agreed-upon fee structure must be
stated in the collaborative charter school contract.
new text end

new text begin (c) The fee that each collaborative charter school pays to an authorizer each year is
the greater of:
new text end

new text begin (1) the basic formula allowance for that year; or
new text end

new text begin (2) the lesser of:
new text end

new text begin (i) the maximum fee factor times the basic formula allowance for that year; or
new text end

new text begin (ii) the fee factor times the basic formula allowance for that year times the
collaborative charter school's adjusted marginal cost pupil units for that year. The fee
factor equals .005 in fiscal year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and
.015 in fiscal years 2013 and later. The maximum fee factor equals 1.5 in fiscal year 2010,
2.0 in fiscal year 2011, 3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
new text end

new text begin (d) For the preoperational planning period, the authorizer may assess a collaborative
charter school a fee equal to the basic formula allowance.
new text end

new text begin (e) By September 30 of each year, an authorizer shall submit to the commissioner
a statement of expenditures related to chartering activities during the previous school
year ending June 30. A copy of the statement shall be given to all schools chartered by
the authorizer.
new text end

new text begin Subd. 26. new text end

new text begin Transportation. new text end

new text begin (a) A collaborative charter school after its first fiscal
year of operation by March 1 of each fiscal year, and a collaborative charter school by
July 1 of its first fiscal year of operation, must notify the district in which the school is
located and the Department of Education if it will provide its own transportation or use the
transportation services of the district in which it is located for the fiscal year.
new text end

new text begin (b) If a collaborative charter school elects to provide transportation for pupils, the
transportation must be provided by the collaborative charter school within a geographic
zone designated by the school. The state must pay transportation aid to the collaborative
charter school according to section 124D.11, subdivision 2. For pupils who reside outside
the district in which the collaborative charter school is located, the collaborative charter
school is not required to provide or pay for transportation between the pupil's residence
and the border of the district in which the collaborative charter school is located. A
parent may be reimbursed by the collaborative charter school for costs of transportation
from the pupil's residence to the border of the district in which the collaborative charter
school is located if the pupil is from a family whose income is at or below the poverty
level as determined by the federal government. The reimbursement may not exceed the
pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less.
Reimbursement may not be paid for more than 250 miles per week. At the time a pupil
enrolls in a collaborative charter school, the collaborative charter school must provide the
parent or guardian with information regarding the transportation.
new text end

new text begin (c) If a collaborative charter school does not elect to provide transportation,
transportation for pupils enrolled at the school must be provided by the district in which
the school is located, according to sections 123B.88, subdivision 6, and 124D.03,
subdivision 8, for a pupil residing in the same district in which the collaborative charter
school is located. Transportation may be provided by the district in which the school
is located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8,
for a pupil residing in a different district. If the district provides the transportation, the
scheduling of routes, manner and method of transportation, control and discipline of the
pupils, and any other matter relating to the transportation of pupils under this paragraph
shall be within the sole discretion, control, and management of the district.
new text end

new text begin Subd. 27. new text end

new text begin Leased space. new text end

new text begin A collaborative charter school may lease space from an
independent or special school board eligible to be an authorizer, other public organization,
private, nonprofit nonsectarian organization, private property owner, or a sectarian
organization if the leased space is constructed as a school facility. The department must
review and approve or disapprove leases in a timely manner.
new text end

new text begin Subd. 28. new text end

new text begin Disseminate information. new text end

new text begin (a) The authorizer, the operators, and the
department must disseminate information to the public on how to form and operate a
collaborative charter school. Collaborative charter schools must disseminate information
about how to use the offerings of a collaborative charter school. Targeted groups include
low-income families and communities, students of color, and students who are at risk
of academic failure.
new text end

new text begin (b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by collaborative
charter schools.
new text end

new text begin Subd. 29. new text end

new text begin Leave to teach in a collaborative charter school. new text end

new text begin If a teacher employed
by a district makes a written request for an extended leave of absence to teach at a
collaborative charter school, the district must grant the leave. The district must grant a
leave not to exceed a total of five years. Any request to extend the leave shall be granted
only at the discretion of the school board. The district may require that the request for a
leave or extension of leave be made before February 1 in the school year preceding the
school year in which the teacher intends to leave, or February 1 of the calendar year in
which the teacher's leave is scheduled to terminate. Except as otherwise provided in
this subdivision and except for section 122A.46, subdivision 7, the leave is governed by
section 122A.46, including, but not limited to, reinstatement, notice of intention to return,
seniority, salary, and insurance.
new text end

new text begin During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account under chapters 354 and 354A, consistent with
subdivision 22.
new text end

new text begin Subd. 30. new text end

new text begin Collective bargaining. new text end

new text begin Employees of the board of directors of a
collaborative charter school may, if otherwise eligible, organize under chapter 179A
and comply with its provisions. The board of directors of a collaborative charter school
is a public employer, for the purposes of chapter 179A, upon formation of one or more
bargaining units at the school. Bargaining units at the school must be separate from any
other units within an authorizing district, except that bargaining units may remain part
of the appropriate unit within an authorizing district, if the employees of the school, the
board of directors of the school, the exclusive representative of the appropriate unit in
the authorizing district, and the board of the authorizing district agree to include the
employees in the appropriate unit of the authorizing district.
new text end

new text begin Subd. 31. new text end

new text begin Teacher and other employee retirement. new text end

new text begin (a) Teachers in a collaborative
charter school must be public school teachers for the purposes of chapters 354 and 354A.
new text end

new text begin (b) Except for teachers under paragraph (a), employees in a collaborative charter
school must be public employees for the purposes of chapter 353.
new text end

new text begin Subd. 32. new text end

new text begin Causes for nonrenewal or termination of collaborative charter
school contract.
new text end

new text begin (a) The duration of the contract with an authorizer must be for the term
contained in the contract according to subdivision 5. The authorizer may or may not renew
a contract at the end of the term for any ground listed in paragraph (b). An authorizer may
unilaterally terminate a contract during the term of the contract for any ground listed
in paragraph (b). At least 60 days before not renewing or terminating a contract, the
authorizer shall notify the board of directors of the collaborative charter school of the
proposed action in writing. The notice shall state the grounds for the proposed action in
reasonable detail and that the collaborative charter school's board of directors may request
in writing an informal hearing before the authorizer within 15 business days of receiving
notice of nonrenewal or termination of the contract. Failure by the board of directors to
make a written request for a hearing within the 15-business-day period shall be treated
as acquiescence to the proposed action. Upon receiving a timely written request for a
hearing, the authorizer shall give ten business days' notice to the collaborative charter
school's board of directors of the hearing date. The authorizer shall conduct an informal
hearing before taking final action. The authorizer shall take final action to renew or not
renew a contract no later than 20 business days before the proposed date for terminating
the contract or the end date of the contract.
new text end

new text begin (b) A contract may be terminated or not renewed upon any of the following grounds:
new text end

new text begin (1) failure to meet the requirements for pupil performance contained in the contract;
new text end

new text begin (2) failure to meet generally accepted standards of fiscal management;
new text end

new text begin (3) violations of law; or
new text end

new text begin (4) other good cause shown.
new text end

new text begin If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 308A or 317A.
new text end

new text begin (c) If the authorizer and the collaborative charter school board of directors mutually
agree to terminate or not renew the contract, a change in authorizers is allowed if the
commissioner approves the transfer to a different eligible authorizer to authorize the
collaborative charter school. Both parties must jointly submit their intent in writing to
the commissioner to mutually terminate the contract. The authorizer that is a party
to the existing contract at least must inform the approved different eligible authorizer
about the fiscal and operational status and student performance of the school. Before the
commissioner determines whether to approve a transfer of authorizer, the commissioner
first must determine whether the collaborative charter school and prospective new
authorizer can identify and effectively resolve those circumstances causing the previous
authorizer and the collaborative charter school to mutually agree to terminate the contract.
If no transfer of authorizer is approved, the school must be dissolved according to
applicable law and the terms of the contract.
new text end

new text begin (d) The commissioner, after providing reasonable notice to the board of directors of a
collaborative charter school and the existing authorizer, and after providing an opportunity
for a public hearing, may terminate the existing contract between the authorizer and the
collaborative charter school board if the collaborative charter school has a history of:
new text end

new text begin (1) failure to meet pupil performance requirements contained in the contract;
new text end

new text begin (2) financial mismanagement or failure to meet generally accepted standards of
fiscal management; or
new text end

new text begin (3) repeated or major violations of the law.
new text end

new text begin Subd. 33. new text end

new text begin Related party lease costs. new text end

new text begin (a) A collaborative charter school is prohibited
from entering a lease of real property with a related party unless the lessor is a nonprofit
corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
reasonable under section 124D.11, subdivision 4, clause (1).
new text end

new text begin (b) For purposes of this section and section 124D.11:
new text end

new text begin (1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
new text end

new text begin (2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;
new text end

new text begin (3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;
new text end

new text begin (4) "person" means an individual or entity of any kind; and
new text end

new text begin (5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.
new text end

new text begin (c) A lease of real property to be used for a collaborative charter school, not
excluded in paragraph (a), must contain the following statement: "This lease is subject to
Minnesota Statutes, section 124D.105, subdivision 33."
new text end

new text begin (d) If a collaborative charter school enters into, as lessee, a lease with a related party
and the collaborative charter school subsequently closes, the commissioner has the right to
recover from the lessor any lease payments in excess of those that are reasonable under
section 124D.11, subdivision 4, clause (1).
new text end

new text begin Subd. 34. new text end

new text begin Pupil enrollment upon nonrenewal or termination of collaborative
charter school contract.
new text end

new text begin If a contract is not renewed or is terminated according to
subdivision 32, a pupil who attended the school, siblings of the pupil, or another pupil
who resides in the same place as the pupil may enroll in the resident district or may
submit an application to a nonresident district according to section 124D.03 at any time.
Applications and notices required by section 124D.03 must be processed and provided in
a prompt manner. The application and notice deadlines in section 124D.03 do not apply
under these circumstances. The closed collaborative charter school must transfer the
student's educational records within ten business days of closure to the student's school
district of residence where the records must be retained or transferred under section
120A.22, subdivision 7.
new text end

new text begin Subd. 35. new text end

new text begin Additional resources. new text end

new text begin The board of directors of a school district that
authorizes a collaborative charter school under this section may provide additional
resources to that charter school in the same manner as any other charter school authorized.
new text end

new text begin Subd. 36. new text end

new text begin Extent of specific legal authority. new text end

new text begin (a) The board of directors of a
collaborative charter school may sue and be sued.
new text end

new text begin (b) The board may not levy taxes or issue bonds.
new text end

new text begin (c) The commissioner, an authorizer, members of the board of an authorizer in their
official capacities, and employees of an authorizer are immune from civil or criminal
liability with respect to all activities related to a collaborative charter school they approve
or authorize. The board of directors shall obtain at least the amount of and types of
insurance up to the applicable tort liability limits under chapter 466. The collaborative
charter school board must submit a copy of the insurance policy to its authorizer and the
commissioner before starting operations. The collaborative charter school board must
submit changes in its insurance carrier or policy to its authorizer and the commissioner
within 20 business days of the change.
new text end

new text begin Subd. 37. new text end

new text begin Employee retirement. new text end

new text begin Teachers employed by a collaborative charter
school are public school teachers for purposes of chapters 354 and 354A. Any other
employees of a collaborative charter school are public employees for purposes of chapter
353.
new text end

new text begin Subd. 38. new text end

new text begin Purchase of goods and services. new text end

new text begin The board of directors of the
collaborative charter school may contract for any goods and services, subject to the
contract or memorandum of understanding establishing the school.
new text end