Minnesota Legislature
SF 3367
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to education; eliminating teacher majority requirement on board of
directors; extending admission preference to children of teachers, staff, and
board members; extending conflict of interest provisions to nonprofit entities;
authorizing use of state money to purchase land and buildings; amending
Minnesota Statutes 2004, sections 124D.10, subdivisions 4a, 9, 23a; 124D.11,
subdivision 7; Minnesota Statutes 2005 Supplement, section 124D.10,
subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2005 Supplement, section 124D.10, subdivision 4,
is amended to read:
Subd. 4.
Formation of school.
(a) A sponsor may authorize one or more licensed
teachers under section 122A.18, subdivision 1, to operate a charter school subject to
approval by the commissioner. A board must vote on charter school application for
sponsorship no later than 90 days after receiving the application. After 90 days, the
applicant may apply to the commissioner. If a board elects not to sponsor a charter school,
the applicant may appeal the board's decision to the commissioner who may elect to assist
the applicant in finding an eligible sponsor. 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 may create a
corporation for the purpose of creating a charter school.
(b) Before the operators may form and operate a school, the sponsor must file an
affidavit with the commissioner stating its intent to authorize a charter school. The
affidavit must state the terms and conditions under which the sponsor would authorize a
charter school and how the sponsor intends to oversee the fiscal and student performance
of the charter school and to comply with the terms of the written contract between the
sponsor and the charter school board of directors under subdivision 6. The commissioner
must approve or disapprove the sponsor's proposed authorization within 90 days of
receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from
authorizing the charter school that was the subject of the affidavit.
(c) The operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
under chapter 317A and must establish a board of directors composed of at least five
members until a timely election for members of the charter school board of directors is
held according to the school's articles and bylaws. A charter school board of directors
must be composed of at least five members. Any staff members who are employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parents of children enrolled in the school may participate in the election for members
of the school's board of directors. Licensed teachers employed at the school, including
teachers providing instruction under a contract with a cooperative, must be deleted text begin a majority
of the deleted text end members of the board of directors deleted text begin before the school completes its third year of
operation, unless the commissioner waives the requirement for a majority of licensed
teachers on the board. Board of director meetings must comply with chapter 13Ddeleted text end .
(d) The granting or renewal of a charter by a sponsoring entity must not be
conditioned upon the bargaining unit status of the employees of the school.
(e) A sponsor may authorize the operators of a charter school to expand the operation
of the charter school to additional sites or to add additional grades at the school beyond
those described in the sponsor's application as approved by the commissioner only
after submitting a supplemental application to the commissioner in a form and manner
prescribed by the commissioner. The supplemental application must provide evidence that:
(1) the expansion of the charter school is supported by need and projected enrollment;
(2) the charter school is fiscally sound;
(3) the sponsor supports the expansion; and
(4) the building of the additional site meets all health and safety requirements to
be eligible for lease aid.
(f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:
(1) proactively assess opportunities for a charter school to maximize all available
revenue sources;
(2) establish and maintain complete, auditable records for the charter school;
(3) establish proper filing techniques;
(4) document formal actions of the charter school, including meetings of the charter
school board of directors;
(5) properly manage and retain charter school and student records;
(6) comply with state and federal payroll record-keeping requirements; and
(7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.
Sec. 2.
Minnesota Statutes 2004, section 124D.10, subdivision 4a, is amended to read:
Subd. 4a.
Conflict of interest.
(a) A member of a charter school board of directors
is prohibited from serving as a member of the board of directors or as an employee or
agent of or a contractor with deleted text begin a for-profitdeleted text end new text begin anynew text end entity with whom the 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. A member of a
charter school board of directors who violates this prohibition shall be individually liable
to the charter school for any damage caused by the violation.
(b) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (a) exists.
(c) deleted text begin A member of a charter school board of directors that serves as a member of the
board of directors or as an employee or agent of or a contractor with a nonprofit entity
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities, must disclose all potential conflicts to the commissioner.
deleted text end
deleted text begin (d)deleted text end The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.
deleted text begin (e)deleted text end new text begin (d)new text end The conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a charter school through a cooperative formed under
chapter 308A when the teacher also serves on the charter school board of directors.
Sec. 3.
Minnesota Statutes 2004, section 124D.10, subdivision 9, is amended to read:
Subd. 9.
Admission requirements.
A charter school may limit admission to:
(1) pupils within an age group or grade level;
(2) people who are eligible to participate in the graduation incentives program
under section 124D.68; or
(3) residents of a specific geographic area where the percentage of the population
of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
population in the congressional district in which the geographic area is located, and as
long as the school reflects the racial and ethnic diversity of the specific area.
A 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. If a charter school is the only
school located in a town serving pupils within a particular grade level, then pupils that
are residents of the town must be given preference for enrollment before accepting pupils
by lot. If a pupil lives within two miles of a charter school and the next closest public
school is more than five miles away, the charter school must give those pupils preference
for enrollment before accepting other pupils by lot.
A charter school shall give preference for enrollment to a sibling of an enrolled pupil
and to a foster child of that pupil's parentsnew text begin and to children of teachers, staff, and school
board members of that schoolnew text end before accepting other pupils by lot.
A charter school may not limit admission to pupils on the basis of intellectual ability,
measures of achievement or aptitude, or athletic ability.
Sec. 4.
Minnesota Statutes 2004, section 124D.10, subdivision 23a, is amended to read:
Subd. 23a.
Related party leasedeleted text begin costsdeleted text end .
(a) A charter school is prohibited from
entering a lease of real property with a related party as defined in this subdivisiondeleted text begin , 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)deleted text end .
(b) For purposes of this subdivision:
(1) A "related party" is an affiliate or close relative of the other party in question, an
affiliate of a close relative, or a close relative of an affiliate.
(2) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, another
person.
(3) "Close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin.
(4) "Person" means an individual or entity of any kind.
(5) "Control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise.
(c) A lease of real property to be used for a charter school, not excluded in paragraph
(b), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."
deleted text begin
(d) If a charter school enters into as lessee a lease with a related party and the
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).
deleted text end
Sec. 5.
Minnesota Statutes 2004, section 124D.11, subdivision 7, is amended to read:
Subd. 7.
Use of deleted text begin state deleted text end money.
Money received from the state may deleted text begin notdeleted text end be used to
purchase land or buildings. The school may own land and buildings deleted text begin if deleted text end obtained through
nonstate sources.