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SF 4195

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 09:08am

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

Current Version - as introduced

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A bill for an act
relating to education; making policy and technical changes for charter school
provisions; amending Minnesota Statutes 2018, sections 124E.01, subdivision 1;
124E.02; 124E.05, subdivisions 2, 4, 5, 6; 124E.06, subdivision 1; 124E.07,
subdivisions 1, 2, 3, 4, 5, 6, 7; 124E.09; 124E.10, subdivisions 1, 4, by adding a
subdivision; 124E.11; 124E.12, subdivision 2; 124E.14; 124E.16; 124E.17,
subdivision 1.

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

Section 1.

Minnesota Statutes 2018, section 124E.01, subdivision 1, is amended to read:


Subdivision 1.

new text beginGoal and new text endpurposes.

The deleted text beginprimary purposedeleted text endnew text begin goalnew text end of deleted text begincharterdeleted text endnew text begin mission-driven
chartered public
new text end schools is to improve deleted text beginall pupildeleted text endnew text begin thenew text end learning deleted text beginand all studentdeleted text endnew text begin,new text end achievementnew text begin,
and success of all students
new text end. deleted text beginAdditional purposes includedeleted text endnew text begin The purposes of chartered public
schools are
new text end to:

(1) increase new text beginquality new text endlearning opportunities for all deleted text beginpupilsdeleted text endnew text begin studentsnew text end;

(2) encourage the use of different and innovative teaching methods;

(3) measure learning outcomes and create different and innovative forms of measuring
outcomes;

(4) establish new forms of accountability for schools; or

(5) create new professional opportunities for teachers, including the opportunity to be
responsible for the learning program at the school site.

new text begin A charter school must identify the purposes it will address in the charter contract and
document the implementation of those purposes in the school's annual report. Documentation
of the implementation of those purposes shall be a component of the authorizer's performance
review of the school.
new text end

Sec. 2.

Minnesota Statutes 2018, section 124E.02, is amended to read:


124E.02 DEFINITIONS.

(a) For purposes of this chapter, the terms defined in this section have the meanings
given them.

(b) "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under section 124E.06, subdivision 4, attesting to
its review and approval process before chartering a school.

(c) "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 begin (d) "Charter management organization" or "CMO" means any nonprofit or for-profit
entity that contracts with a charter school board of directors to provide, manage, or oversee
all or substantially all of a school's education program or a school's administrative, financial,
business, or operational functions.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end "Control" means the ability to affect the management, operations, or policy actions
or decisions of a person, whether by owning voting securities, by contract, or otherwise.

new text begin (f) "Educational management organization" or "EMO" means a nonprofit or for-profit
entity that provides, manages, or oversees all or substantially all of the education program,
or the school's administrative, financial, business, or operational functions.
new text end

deleted text begin (e)deleted text endnew text begin (g)new text end "Immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnership is no more remote than first cousin.

new text begin (h) "Market need and demand study" means a study that includes the following for the
proposed locations of the school or additional site:
new text end

new text begin (1) current and projected demographic information;
new text end

new text begin (2) student enrollment patterns;
new text end

new text begin (3) information on existing schools and types of educational programs currently available;
new text end

new text begin (4) characteristics of proposed students and families;
new text end

new text begin (5) availability of properly zoned and classified facilities; and
new text end

new text begin (6) quantification of existing demand for the school or site.
new text end

deleted text begin (f)deleted text endnew text begin (i)new text end "Person" means an individual or entity of any kind.

deleted text begin (g)deleted text endnew text begin (j)new text end "Related party" means an affiliate or immediate relative of the other interested
party, an affiliate of an immediate relative who is the other interested party, or an immediate
relative of an affiliate who is the other interested party.

deleted text begin (h)deleted text endnew text begin (k)new text end For purposes of this chapter, the terms defined in section 120A.05 have the same
meanings.

Sec. 3.

Minnesota Statutes 2018, section 124E.05, subdivision 2, is amended to read:


Subd. 2.

deleted text beginRequirements for authorizersdeleted text endnew text begin Role, responsibilities, and requirements of
authorizers
new text end.

deleted text beginThe authorizer must participate in department-approved training.deleted text endnew text begin (a) The role
of an authorizer is to ensure that a school has autonomy, fulfills the goal and purposes of a
chartered public school, and is accountable to the agreed upon terms of the charter school
contract in order to safeguard quality educational opportunities for students and maintain
public trust and confidence.
new text end

new text begin (b) An authorizer has the following responsibilities:
new text end

new text begin (1) review applications for new schools, including grade and site expansions and transfers
of current schools, and determine whether to approve or deny the application based on the
authorizer's approved criteria;
new text end

new text begin (2) negotiate and execute the performance charter contracts with the schools it authorizes;
new text end

new text begin (3) conduct ongoing monitoring, oversight, and evaluation of the school's academic,
operational, and financial performance commensurate with the school's circumstances during
the term of the charter contract; and
new text end

new text begin (4) evaluate the academic, operational, and financial performance of the school as defined
in the charter contract prior to the end of the contract to determine the renewal, nonrenewal,
or termination of the contract.
new text end

new text begin (c) The commissioner may not require an authorizer to undertake a role or responsibility
beyond those in statute or the charter contract or perform any function that the department
exercises in relation to a public school, school board, or school district.
new text end

new text begin (d) The authorizer must document in the annual income and expenditure report under
subdivision 8 the training its staff and consultants completed during the previous year on
the charter school law and the authorizer's role or responsibilities.
new text end

Sec. 4.

Minnesota Statutes 2018, section 124E.05, subdivision 4, is amended to read:


Subd. 4.

Application content.

(a) To be approved as an authorizer, an applicant must
include in its application to the commissioner at least the following:

(1) how the organization carries out its mission by chartering schools;

(2) a description of the capacity of the organization to serve as an authorizer, including
the positions allocated to authorizing duties, the qualifications for those positions, the
full-time equivalencies of those positions, and the financial resources available to fund the
positions;

(3) the application and review process the authorizer uses to decide whether to grant
charters;

(4) the type of contract it arranges with the schools it charters to meet the provisions of
section 124E.10;

(5) the process for overseeing the school, consistent with clause (4), to ensure that the
schools chartered comply with applicable law and rules and the contract;

(6) the criteria and process the authorizer uses to approve applications adding grades or
sites under section 124E.06, subdivision 5;new text begin and
new text end

(7) the process for renewing or terminating the school's charter based on evidence
showing the academic, organizational, and financial competency of the school, including
its success in increasing student achievement and meeting the goals of the charter school
agreementdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (8) an assurance specifying that the organization is committed to serving as an authorizer
for the full five-year term.
deleted text end

(b) Notwithstanding paragraph (a), an authorizer that is a school district may satisfy the
requirements of paragraph (a), clauses (1) and (2), and any requirement governing a conflict
of interest between an authorizer and its charter schools or ongoing evaluation or continuing
education of an administrator or other professional support staff by submitting to the
commissioner a written promise to comply with the requirements.

Sec. 5.

Minnesota Statutes 2018, section 124E.05, subdivision 5, is amended to read:


Subd. 5.

Review by commissioner.

(a) The commissioner shall review an authorizer's
performance every five years in a manner and form determined by the commissioner, subject
to paragraphs (b) and (c), and may review an authorizer's performance more frequently at
the commissioner's own initiative or at the request of a charter school deleted text beginoperatordeleted text endnew text begin administrator,
school employees
new text end, charter school board deleted text beginmemberdeleted text endnew text begin of directorsnew text end, or other interested party. The
commissioner, after completing the review, shall transmit a report with findings to the
authorizernew text begin and the schools authorized by the authorizernew text end.

(b) Consistent with this subdivision, the commissioner must:

deleted text begin (1) use criteria appropriate to the authorizer and the schools it charters to review the
authorizer's performance; and
deleted text end

deleted text begin (2) consult with authorizers, charter school operators, and other charter school
stakeholders in developing review criteria under this paragraph.
deleted text end

deleted text begin (c) The commissioner's form must use existing department data on the authorizer to
minimize duplicate reporting to the extent practicable. When reviewing an authorizer's
performance under this subdivision, the commissioner must not:
deleted text end

deleted text begin (1) fail to credit;
deleted text end

deleted text begin (2) withhold points; or
deleted text end

deleted text begin (3) otherwise penalize an authorizer for failing to charter additional schools or for the
absence of complaints against the authorizer's current portfolio of charter schools.
deleted text end

new text begin (1) develop the form and manner of the performance review system in consultation with
authorizers, school administrators, charter school boards of directors, and other charter
school stakeholders;
new text end

new text begin (2) publish the form and manner of the authorizer performance review process at least
12 months before the beginning of the review cycle;
new text end

new text begin (3) base the performance review system on authorizer roles and responsibilities in
subdivision 2 and section 124E.10;
new text end

new text begin (4) base an authorizer's performance review on adherence and implementation of the
authorizer's policies, procedures, and processes approved by the commissioner;
new text end

new text begin (5) base an authorizer's performance review on the authorizer's self-assessment and input
from the school administrators, charter school boards of directors, and other charter school
stakeholders who interact with the authorizer;
new text end

new text begin (6) base an authorizer's performance review on the full period since the last review; and
new text end

new text begin (7) develop and maintain a portfolio of all reports and data submitted to the department
since the last review to minimize any duplicative submission and reporting of information
for the review.
new text end

new text begin (c) Consistent with this subdivision, the commissioner must not penalize an authorizer
for:
new text end

new text begin (1) not chartering additional schools or for the absence of complaints against an authorizer
or an authorizer's portfolio of schools;
new text end

new text begin (2) missing a submission deadline, except if there is a documented pattern of failing to
meet submission deadlines; or
new text end

new text begin (3) not undertaking a role or responsibility beyond those defined in this section, the
charter contract, or the authorizer's approved policies, procedures, or processes.
new text end

Sec. 6.

Minnesota Statutes 2018, section 124E.05, subdivision 6, is amended to read:


Subd. 6.

Corrective action.

(a) If, consistent with this chapter, the commissioner finds
that an authorizer has not met the requirements of this chapter, the commissioner may subject
the authorizer to corrective action, which may include deleted text beginterminating the contract with the
charter school board of directors of a school it chartered.
deleted text endnew text begin:
new text end

new text begin (1) a corrective action plan with specific deadlines;
new text end

new text begin (2) a prohibition on accepting transfer applications from schools;
new text end

new text begin (3) a prohibition on accepting applications for new schools; or
new text end

new text begin (4) termination of an authorizer's ability to continue to charter schools.
new text end

The commissioner must notify the authorizer in writing of any findings that may subject
the authorizer to corrective action and the authorizer then has 15 business days to request
an informal hearing before the commissioner takes corrective action. If the commissioner
terminates new text beginthe authorizer's authority to charter new text enda deleted text begincontract between an authorizer and a charter
school under this paragraph, the commissioner may assist the charter
deleted text end schoolnew text begin, the
commissioner shall implement a timely process for schools authorized by the authorizer to
acquire a new authorizer and assist affected schools
new text end in acquiring a new authorizer.

(b) The commissioner may at any time take corrective action against an authorizer,
including terminating an authorizer's ability to charter a school for:

(1) failing to demonstrate the criteria under subdivision 3 under which the commissioner
approved the authorizer;

(2) violating a term of the chartering contract between the authorizer and the charter
school board of directors;

(3) unsatisfactory performance as an approved authorizer; or

(4) any good cause shown that gives the commissioner a legally sufficient reason to take
corrective action against an authorizer.

new text begin (c) If an authorizer is subject to corrective action and has not implemented actions
satisfactory to the commissioner within 90 business days, a school board may request
approval from the commissioner to transfer to another authorizer without the approval or
consent of the authorizer in corrective action.
new text end

Sec. 7.

Minnesota Statutes 2018, section 124E.06, subdivision 1, is amended to read:


Subdivision 1.

Individuals eligible to organize.

(a) An authorizer, after receiving an
application from a charter school developer, may charter either a licensed teacher under
section 122A.18, subdivision 1, or a group of individuals that includes one or more licensed
teachers under section 122A.18, subdivision 1, to operate a school subject to the
commissioner's approval of the authorizer's affidavit under subdivision 4.

(b) "Application" under this section means the charter school business plan a charter
school developer submits to an authorizer for approval to establish a charter school. This
application must include:

(1) the deleted text beginschool developer'sdeleted text endnew text begin proposed school'snew text end:

(i) mission deleted text beginstatementdeleted text endnew text begin and vision statementsnew text end;

(ii) deleted text beginschooldeleted text end purposesnew text begin and goalsnew text end;

(iii) new text begineducational new text endprogram designnew text begin and how the program will improve student learning,
success, and achievement
new text end;

new text begin (iv) plan to address the social and emotional learning needs of students and student
support services;
new text end

new text begin (v) plan to provide special education management and services;
new text end

new text begin (vi) plan for staffing the school with appropriately qualified and licensed personnel;
new text end

deleted text begin (iv)deleted text endnew text begin (vii)new text end financial plan;

deleted text begin (v)deleted text endnew text begin (viii)new text end governance and management structurenew text begin and plannew text end; deleted text beginand
deleted text end

deleted text begin (vi) background and experience;
deleted text end

new text begin (ix) market need and demand study; and
new text end

new text begin (x) plan for ongoing outreach and dissemination of information about the school's
offerings and enrollment procedure to families that reflect the diversity of Minnesota's
population and targeted groups under section 124E.17, subdivision 1, paragraph (a);
new text end

new text begin (2) the school developer's experience and background, including criminal history and
bankruptcy background checks;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end any other information the authorizer requests; and

deleted text begin (3)deleted text endnew text begin (4)new text end a "statement of assurances" of legal compliance prescribed by the commissioner.

(c) An authorizer shall not approve an application submitted by a charter school developer
under paragraph (a) if the application does not comply with subdivision 3, paragraph (e),
and section 124E.01, subdivision 1. The commissioner shall not approve an affidavit
submitted by an authorizer under subdivision 4 if the affidavit does not comply with
subdivision 3, paragraph (e), and section 124E.01, subdivision 1.

Sec. 8.

Minnesota Statutes 2018, section 124E.07, subdivision 1, is amended to read:


Subdivision 1.

Initial board of directors.

Before entering into a contract or other
agreement for professional or other services, goods, or facilities, the operators authorized
to organize and operate a school must establish a board of directors composed of at least
five members deleted text beginwho are not related partiesdeleted text end.new text begin The initial board members must not be related
parties.
new text end The initial board continues to serve until a timely election for members of the
ongoing charter school board of directors is held according to the school's articles and
bylaws under subdivision 4.new text begin The initial board of directors and school developers must
comply with the training requirements in subdivision 7 upon the incorporation of the school.
new text end

Sec. 9.

Minnesota Statutes 2018, section 124E.07, subdivision 2, is amended to read:


Subd. 2.

Ongoing board of directors.

deleted text beginThe ongoing board must be elected before the
school completes its third year of operation.
deleted text endnew text begin The ongoing board must begin the election
process by the end of the first year of operation and be completed by the end of the third
year of operation. The terms of board members shall begin on July 1. The bylaws shall set
the number of terms an individual may serve on the board or as an officer of the board.
new text end
Board elections must be held during the school year but may not be conducted on days when
the school is closed.

Sec. 10.

Minnesota Statutes 2018, section 124E.07, subdivision 3, is amended to read:


Subd. 3.

Membership criteria.

(a) The ongoing charter school board of directors shall
have at least five deleted text beginnonrelateddeleted text end members deleted text beginand includedeleted text endnew text begin. The board members must not be related.
The ongoing board shall include
new text end: (1) at least one licensed teacher who is employed new text beginby the
school
new text endas a teacher new text beginwho provides direct instruction to students new text endat the school or providesnew text begin
direct
new text end instruction under contract between the charter school and a cooperative; (2) at least
one parent or legal guardian of a student enrolled in the charter school who is not an employee
of the charter school; and (3) at least one interested community member who resides in
Minnesota, is not employed by the charter school, and does not have a child enrolled in the
school. new text beginThe board structure must be defined in the bylaws. new text endThe board structure may include
a majority of teachers under this paragraph deleted text beginordeleted text endnew text begin, a majority ofnew text end parents deleted text beginordeleted text endnew text begin, a majority ofnew text end
community members, or it may have no clear majority. The deleted text beginchief financial officer and thedeleted text end
chief administrator may only serve as ex-officio nonvoting board members. No charter
school employees shall serve on the board other than teachers under clause (1). Contractors
providing facilities, goods, or services to a charter school shall not serve on the board of
directors of the charter school.

(b) An individual is prohibited from serving as a member of the charter school board of
directors if: (1) the individual, an immediate family member, or the individual's partner is
a full or part owner or principal with a for-profit or nonprofit entity or independent contractor
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities; or (2) an immediate family member is an employee of the school. An
individual may serve as a member of the board of directors if no conflict of interest exists
under this paragraph, consistent with this section.new text begin An individual is prohibited from serving
on more than one charter school board at the same time.
new text end

(c) A violation of paragraph (b) renders a contract voidable at the option of the
commissioner or the charter school board of directors. A member of a charter school board
of directors who violates paragraph (b) is individually liable to the charter school for any
damage caused by the violation.

(d) Any employee, agent, or board member of the authorizer who participates in initially
reviewing, approving, overseeing, evaluating, renewing, or not renewing the charter school
is ineligible to serve on the board of directors of a school chartered by that authorizer.

Sec. 11.

Minnesota Statutes 2018, section 124E.07, subdivision 4, is amended to read:


Subd. 4.

Board structure.

Board bylaws shall outline the process and procedures for
changing the board's governance structure, consistent with chapter 317A. A board may
change its governance structure only:

(1) by a majority vote of the board of directors deleted text beginand a majority vote of the licensed teachers
employed by the school as teachers, including licensed teachers providing instruction under
a contract between the school and a cooperative
deleted text end; deleted text beginand
deleted text end

new text begin (2) by a majority vote of the licensed teachers employed by the school as teachers who
provide instruction to students, including licensed teachers providing instruction under a
contract between the school and a cooperative; and
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end with the authorizer's approval.

Any change in board governance structure must conform with the board composition
established under this section.

Sec. 12.

Minnesota Statutes 2018, section 124E.07, subdivision 5, is amended to read:


Subd. 5.

deleted text beginEligible votersdeleted text endnew text begin Board electionsnew text end.

new text begin(a) new text endStaff members employed deleted text beginatdeleted text endnew text begin bynew text end the school,
including teachers providing instruction under a contract with a cooperative, members of
the board of directors, and all parents or legal guardians of children enrolled in the school
are the voters eligible to elect the members of the school's board of directors. deleted text beginA charter
school must notify eligible voters of the school board election dates at least 30 days before
the election.
deleted text end

new text begin (b) The board of directors must establish and publish election policies and procedures
on the school's website.
new text end

new text begin (c) The board of directors must notify eligible voters of the school board election dates
and voting procedures at least 30 calendar days before the election and post this information
on the school's website.
new text end

new text begin (d) The board of directors must notify eligible voters of the names, biographies, and
candidate statements at least ten calendar days before the election and post this information
on the school's website.
new text end

Sec. 13.

Minnesota Statutes 2018, section 124E.07, subdivision 6, is amended to read:


Subd. 6.

Duties.

new text begin(a) new text endThe board of directors deleted text beginalso shall decide anddeleted text end is responsible for new text beginall
decision making on
new text endpolicy matters related to operating the school, including budgeting,
curriculum programming, personnel, and operating procedures. deleted text beginThe board shall adopt a
nepotism policy.
deleted text end The board deleted text beginshalldeleted text endnew text begin mustnew text end adopt personnel evaluation policies and practices
that, at a minimum:

(1) carry out the school's mission and goals;

(2) evaluate how charter contract goals and commitments are executed;

(3) evaluate student achievement, postsecondary and workforce readiness, and student
engagement and connection goals;

(4) establish a teacher evaluation process under section 124E.03, subdivision 2, paragraph
(h); and

(5) provide professional development related to the individual's job responsibilities.

new text begin (b) The board must adopt a nepotism policy that prohibits the employment of immediate
family members of a board member, school employee, or a teacher who provides instruction
under a contract between the charter school and a cooperative without: (1) publicly posting
the position for 20 business days; and (2) a supermajority approval of the hiring by the board
of directors. A board member, school employee, or teacher under contract with a cooperative
must not be involved in an interview, selection process, hiring, supervision, or evaluation
of an employee who is an immediate family member.
new text end

Sec. 14.

Minnesota Statutes 2018, section 124E.07, subdivision 7, is amended to read:


Subd. 7.

Training.

deleted text begin Every charter school board member shall attend annual training
throughout the member's term. All new board members shall attend initial training on the
board's role and responsibilities, employment policies and practices, and financial
management. A new board member who does not begin the required initial training within
six months after being seated and complete that training within 12 months after being seated
is automatically ineligible to continue to serve as a board member. The school shall include
in its annual report the training each board member attended during the previous year.
deleted text end new text begin (a)
Every voting charter school board member and nonvoting ex-officio member shall attend
board training.
new text end

new text begin (b) A new board member must successfully complete training on a charter school board's
roles and responsibilities, open meeting law, and data practices law prior to being seated
on the board. An ex-officio member must successfully complete this training within three
months of starting employment at the school.
new text end

new text begin (c) A new board member must successfully complete training on employment policies
and practices under chapter 181; public school funding and financial management; and the
board's roles and responsibilities regarding student success, achievement, and performance
within 12 months of being seated on the board or the individual is automatically ineligible
to continue to serve as a board member. A board member who does not complete training
within the 12-month period is ineligible to be elected or appointed to a charter school board
for a period of 18 months.
new text end

new text begin (d) Every charter school board member must successfully complete annual training
modules throughout the member's term based on an annual assessment of the training needs
of individual members and the full board. Ongoing training modules include but are not
limited to: budgeting, financial management, recruiting and hiring a charter school director,
evaluating a charter school director, governance-management relationships, student support
services, student fair dismissal, state standards, cultural diversity, succession planning,
strategic planning, program oversight and evaluation, compensation systems, human resources
policies, effective parent and community relationships, authorizer contract and relationships,
charter school law, legal liability, board recruitment and elections, board meetings and
operations, policy development and review, and school health and safety.
new text end

new text begin (e) The organization or person providing training under paragraphs (b), (c), and (d) must
certify the individual's successful completion of the training provided.
new text end

new text begin (f) The charter school is responsible for covering the costs related to board training. The
charter school must include in its annual report the training each board member completed
during the previous year.
new text end

new text begin (g) The board must ensure that an annual assessment of the board's performance is
conducted and the results are reported in the school's annual report.
new text end

Sec. 15.

Minnesota Statutes 2018, section 124E.09, is amended to read:


124E.09 EXTENT OF SPECIFIC LEGAL AUTHORITY.

(a) The board of directors of a charter school may sue and be sued.

(b) The board may not levy taxes or issue bonds.

(c) The commissioner, an authorizer, members of the board of an authorizer in their
official capacity, and employees of an authorizer are immune from civil or criminal liability
with respect to all activities related to a 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 charter school board must submit a copy of the
insurance policy to its authorizer before starting operations. The charter school board must
submit changes in its insurance carrier or policy to its authorizer within 20 business days
of the change.

(d) Notwithstanding section 3.736, the charter school shall assume full liability for its
activities and indemnify and hold harmless the authorizer and its officers, agents, and
employees from any suit, claim, or liability arising from any operation of the charter school
and the commissioner and department officers, agents, and employees. A charter school is
not required to indemnify or hold harmless a state employee if the state would not be required
to indemnify and hold the employee harmless under section 3.736, subdivision 9.

new text begin (e) The board of directors may enter into joint powers agreements with organizations
under section 471.59, subdivision 1, or with other charter schools for the purposes of
providing special education services.
new text end

Sec. 16.

Minnesota Statutes 2018, section 124E.10, subdivision 1, is amended to read:


Subdivision 1.

Contents.

(a) To authorize a charter school, the authorizer and the charter
school board of directors must sign a written contract within 45 business days of the
commissioner's approval of the authorizer's affidavit. The authorizer shall submit a copy of
the charter contract to the commissioner within ten business days after the contract is signed
by the contracting parties. The contract must include at least the following:

(1) a declaration that the charter school will carry out the primary purpose in section
124E.01, subdivision 1, and indicate how the school will report its implementation of the
primary purpose to its authorizer;

(2) a declaration of the additional purpose or purposes in section 124E.01, subdivision
1
, that the school intends to carry out and indicate how the school will report its
implementation of those purposes to its authorizer;

(3) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;

(4) a statement of admission policies and procedures;

(5) a school governance, management, and administration plan;

(6) signed agreements from charter school board members to comply with the federal
and state laws governing organizational, programmatic, and financial requirements applicable
to charter schools;

(7) the criteria, processes, and procedures the authorizer will use to monitor and evaluate
the fiscal, operational, and academic performance, consistent with subdivision 3, paragraphs
(a) and (b);

(8) for contract renewal, the formal written performance evaluation that is a prerequisite
for reviewing a charter contract under subdivision 3;

(9) types and amounts of insurance liability coverage the charter school must obtain,
consistent with section 124E.03, subdivision 2, paragraph (d);

(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and hold
harmless from any suit, claim, or liability arising from any charter school operation:

(i) the authorizer and its officers, agents, and employees; and

(ii) notwithstanding section 3.736, the commissioner and department officers, agents,
and employees;

(11) the term of the contract, which, for an initial contract, may be up to five years plus
a preoperational planning period, or for a renewed contract or a contract with a new authorizer
after a transfer of authorizers, may be up to five years, if warranted by the school's academic,
financial, and operational performance;

(12) how the charter school board of directors or the charter school operators 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 charter
school will provide the special instruction and services to children with a disability;

(13) the specific conditions for contract renewal that identify the performance of all
students under the primary purpose of section 124E.01, subdivision 1, as the most important
factor in determining whether to renew the contract; deleted text beginand
deleted text end

(14) the additional purposes under section 124E.01, subdivision 1, and related
performance obligations under clause (7) contained in the charter contract as additional
factors in determining whether to renew the contractdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (15) how the charter school will conduct ongoing outreach and dissemination of
information about the school's offerings and enrollment procedure to families that reflect
the diversity of Minnesota's population, and targeted groups under section 124E.17,
subdivision 1, paragraph (a).
new text end

(b) In addition to the requirements of paragraph (a), the charter contract must contain
the plan for an orderly closing of the school under chapter 317A, that establishes the
responsibilities of the school board of directors and the authorizer, whether the closure is a
termination for cause, a voluntary termination, or a nonrenewal of the contract. The plan
must establish who is responsible for:

(1) notifying the commissioner, school district in which the charter school is located,
and parents of enrolled students about the closure;

(2) providing parents of enrolled students information and assistance to enable the student
to re-enroll in another school;

(3) transferring student records under section 124E.03, subdivision 5, paragraph (b), to
the student's resident school district; and

(4) closing financial operations.

(c) A charter school must design its programs to at least meet the outcomes adopted by
the commissioner for public school students, including world's best workforce goals under
section 120B.11, subdivision 1. In the absence of the commissioner's requirements governing
state standards and benchmarks, 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 begin (d) A charter school contract for a charter school where at least 70 percent of enrolled
students are eligible to participate in the graduation incentives program under section
124D.68, or that limits admission to students eligible to participate in the graduation
incentives program under section 124D.68, must include innovative and different academic,
college, and workforce readiness and student engagement accountability measures and
achievement levels that assist students to succeed in school.
new text end

Sec. 17.

Minnesota Statutes 2018, section 124E.10, subdivision 4, is amended to read:


Subd. 4.

Causes for nonrenewal or termination of charter school contract.

(a) The
duration of the contract with an authorizer must be for the term contained in the contract
according to subdivision 1, paragraph (a).new text begin A charter school board of directors must formally
submit a request to renew the contract with the authorizer by the date set forth in the charter
contract. A charter school board of directors that does not submit a request for renewal,
mutual nonrenewal, or transfer of authorizer must cease operation at the end of the current
contract.
new text end

new text begin (b)new text end The authorizer may or may not renew a contract at the end of the term for any ground
listed in paragraph deleted text begin(b)deleted text endnew text begin (c)new text end. An authorizer may unilaterally terminate a contract during the
term of the contract for any ground listed in paragraph deleted text begin(b)deleted text endnew text begin (c)new text end. At least 60 business days
before not renewing or terminating a contract, the authorizer shall notify the board of
directors of the charter school of the proposed action in writing. The notice shall state the
grounds for the proposed action in reasonable detail and describe the informal hearing
process, consistent with this paragraph. The charter school's board of directors may request
in writing an informal hearing before the authorizer within 15 business days after receiving
notice of nonrenewal or termination of the contract. Failure by the board of directors to
make a written request for an informal 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 charter school's board
of directors of the hearing date.new text begin The hearing must be recorded by tape recording, video, or
a court reporter. The recording must be preserved for three years and made available to the
public.
new text end 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.

deleted text begin (b)deleted text endnew text begin (c)new text end An authorizer may terminate or not renew a contract upon any of the following
grounds:

(1) failure to demonstrate satisfactory academic achievement for all students, including
the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If the authorizer terminates or does not renew a contract under this paragraph, the school
must be dissolved according to the applicable provisions of chapter 317A.

deleted text begin (c)deleted text endnew text begin (d)new text end The commissioner, after providing reasonable notice to the board of directors of
a 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 charter school
board if the charter school has a history of:

(1) failure to meet pupil performance requirements, consistent with state law;

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

(3) repeated or major violations of the law.

Sec. 18.

Minnesota Statutes 2018, section 124E.10, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin School closures. new text end

new text begin (a) Upon a final decision to close a charter school, whether
by voluntary action of the charter school's board of directors, nonrenewal or termination of
the charter contract by the authorizer, or termination of the charter contract by the
commissioner, the board of directors shall appoint a school closure trustee, approved by the
authorizer, within 15 business days of the final decision. The board of directors or the
authorizer may require the trustee to post a bond.
new text end

new text begin (b) The trustee must be a resident of Minnesota; possess a bachelor's or postgraduate
degree in accounting, law, nonprofit management, educational administration, or other
relevant management, administration, or financial field; and have at least five years of work
experience in the degree area. The trustee must submit to a state and federal criminal history
background check; must not have been convicted of a felony or other crime involving moral
turpitude; and must not have been found liable in a civil court for fraud, breach of fiduciary
duty, civil theft, or similar misconduct. The trustee must not be under investigation or
pending criminal prosecution for a felony or other crime. The trustee must not have a history
of wage garnishment by the Internal Revenue Service or the state and must not have filed
for bankruptcy.
new text end

new text begin (c) The trustee must not have been an employee or contractor of the charter school during
the previous five years and must not have an immediate family member who is an employee
or contractor of the charter school or who serves on the charter school's board of directors.
The trustee must have no material interest adverse to the charter school.
new text end

new text begin (d) The trustee must activate and execute the closure plan for the charter school outlined
in the school's charter contract, including the transfer of student records required by
subdivision 6, and the reporting of financial and student data to the department necessary
for the release of final aid payments under section 124E.25, subdivision 1a. Upon the
appointment of the trustee, the trustee must approve all school expenditures before payment
and shall be a required signatory on all school accounts and payments made by the school.
The trustee has the authority to void and seek reimbursement of any and all extraordinary
payments of the school to individuals, contractors, or corporations made within 90 business
days of a final decision to close. If during the closure process it is determined by the charter
school's board of directors or the authorizer that the trustee is not performing the closure
duties in an efficient and effective manner, the authorizer may appoint a new trustee.
new text end

new text begin (e) The trustee is entitled to immunity provided by common law for acts or omissions
within the scope of the trustee's appointment. The trustee is not exempt from an illegal or
criminal act, nor any act that is a result of malfeasance or misfeasance.
new text end

new text begin (f) A charter school closure fund must be established and managed by the commissioner
of education. The commissioner may charge the fund a management fee commensurate
with the annual activity in the fund.
new text end

new text begin (g) The fund must be financed by a per-capita pupil fee paid by all charter schools. Until
the fund reaches a cap of $200,000, the per-capita pupil fee shall be $1 per pupil annually.
Upon the fund reaching the $200,000 cap, the annual per-capita pupil fee shall equal the
per-pupil amount needed to maintain the fund at $200,000. The commissioner may deduct
the annual fee from a charter school aid payment in the month of February based on the
number of pupils enrolled in charter schools on October 1 of the previous year, and transfer
the funding to the charter school closure fund. When an authorizer ceases to authorize
schools, the authorizer must transfer any remaining balance from authorizer fees to the fund.
new text end

new text begin (h) Funds from the charter school closure fund may only be authorized and used for the
following expenses: the cost of the external audits necessary for the school closure process;
the cost of liability insurance for the school corporation during the closure process; legal
costs for the dissolution of the school corporation; and the trustee's fee, negotiated upon
appointment. The charter school closure fund must not be used for any other expenses
related to the closed school and may only be requested after all other school funds and assets
of the closed school have been expended. No more than $70,000 may be expended from
the fund for an individual school closure process. The trustee may request funding to cover
the authorized expenditures, except the trustee's fee must be requested by the charter school's
board of directors or the authorizer if the board of directors is nonoperative.
new text end

new text begin (i) A Charter School Closure Fund Committee must approve any distribution from the
fund and establish the amount to assess schools to replenish the fund. The committee must
be composed of three members: one appointed by the Minnesota Association of Charter
Schools, one appointed by the Minnesota Association of Charter School Authorizers, and
one appointed by the commissioner.
new text end

new text begin (j) The commissioner must issue an annual report on the income and expenditures of
the fund by September 30 to all charter schools.
new text end

new text begin (k) If a charter school board of directors files for bankruptcy upon a final decision to
close the school, the bankruptcy trustee appointed by the bankruptcy court shall have the
authority to activate and execute the closure plan in the charter school contract.
new text end

Sec. 19.

Minnesota Statutes 2018, section 124E.11, is amended to read:


124E.11 ADMISSION REQUIREMENTS AND ENROLLMENT.

(a) A charter school, including its preschool or prekindergarten program established
under section 124E.06, subdivision 3, paragraph (b), may limit admission to:

(1) pupils within an age group or grade level;

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

(3) residents of a specific geographic area new text begindefined in the charter new text endin which the school is
located when the majority of students deleted text beginserved by the schooldeleted text endnew text begin that reside in that areanew text end are
members of underserved populations.

(b) A charter school, including its preschool or prekindergarten program established
under section 124E.06, subdivision 3, paragraph (b), deleted text beginshalldeleted text endnew text begin mustnew text end 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
charter school must develop and publish, including on its website, a lottery policy and
process that it must use when accepting pupils by lot.new text begin The lottery must be held at an open
public meeting that facilitates attendance of potential families.
new text end

(c) A charter school deleted text beginshalldeleted text endnew text begin mustnew text end give enrollment preference 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 staffnew text begin who are eligible for employment benefitsnew text end before accepting
other pupils by lot. A charter school that is located in Duluth township in St. Louis County
and admits students in kindergarten through grade 6 must give enrollment preference to
students residing within a five-mile radius of the school and to the siblings of enrolled
children. A charter school may give enrollment preference to children currently enrolled in
the school's free preschool or prekindergarten program under section 124E.06, subdivision
3
, paragraph (b), who are eligible to enroll in kindergarten in the next school year.

(d) A deleted text beginperson shalldeleted text endnew text begin child mustnew text end not be admitted to a charter school (1) as a kindergarten
pupil, unless the pupil is at least five years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences; or (2) as a first
grade student, unless the pupil is at least six years of age on September 1 of the calendar
year in which the school year for which the pupil seeks admission commences or has
completed kindergarten; except that a charter school may establish and publish on its website
a policy for admission of selected pupils at an earlier age, consistent with the enrollment
process in paragraphs (b) and (c).

(e) Except as permitted in paragraph (d), a charter school, including its preschool or
prekindergarten program established under section 124E.06, subdivision 3, paragraph (b),
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 section.

(f) The charter school deleted text beginshalldeleted text endnew text begin or any agent of the school mustnew text end not distribute any services
deleted text begin ordeleted text endnew text begin,new text end goodsnew text begin, payments, or other incentivesnew text end of value to students, parents, or guardians as an
inducement, term, or condition of enrolling a student in a charter school.

(g) Once a student is enrolled in the school, the student is considered enrolled in the
school until the deleted text beginstudent formally withdrawsdeleted text endnew text begin school receives a request for the transfer of
educational records from another school, or written election by the parent or legal guardian
of the withdrawing student,
new text end or is expelled under the Pupil Fair Dismissal Act in sections
121A.40 to 121A.56.

(h) A charter school with at least 90 percent of enrolled students who are eligible for
special education services and have a primary disability of deaf or hard-of-hearing may
enroll prekindergarten pupils with a disability under section 126C.05, subdivision 1,
paragraph (a), and must comply with the federal Individuals with Disabilities Education
Act under Code of Federal Regulations, title 34, section 300.324, subsection (2), clause
(iv).

Sec. 20.

Minnesota Statutes 2018, section 124E.12, subdivision 2, is amended to read:


Subd. 2.

Administrators.

deleted text begin (a) A person, without holding a valid administrator's license,
may perform administrative, supervisory, or instructional leadership duties. The board of
directors shall establish qualifications for all persons who hold administrative, supervisory,
or instructional leadership roles. The qualifications shall cover at least: 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.
deleted text end

deleted text begin (b) 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. The school's annual report must include
public personnel information documenting the professional development plan.
deleted text end

new text begin (a) A charter school board of directors must establish qualifications for all persons who
hold administrative, supervisory, or instructional leadership positions. The qualifications
must include a requirement that a person hold a minimum of a four-year degree from an
accredited institution that includes education on the following: instruction and assessment,
curriculum design, human resource and personnel management, professional ethics, child
development, financial management, legal and compliance management, special education
oversight, contract management, effective communication, cultural competency, board and
authorizer relationships, parent relationships, and community partnerships. A charter school
board of directors must use those qualifications as the basis for the job description, hiring,
and performance evaluation of the charter school director. The charter school director must
use those qualifications as the basis for the job descriptions, hiring, and performance review
for the administrative, supervisory, and instructional leaders who report to the charter school
director.
new text end

new text begin (b) A person who does not hold a valid administrator's license may perform
administrative, supervisory, or instructional leadership duties. A person without a valid
administrator's license must complete a minimum of 25 hours annually of competency-based
training modules corresponding to the individual's annual professional development needs
and plan approved by the charter school board of directors. Training modules include but
are not limited to: instruction and curriculum; state standards; teacher and staff hiring,
development, support, and evaluation; social-emotional learning; data collection and usage;
assessment methodologies; use of technology for learning and management; charter school
law and requirements; code of professional ethics; financial management and state accounting
requirements; grant management; legal and compliance management; special education
management; health and safety laws; restorative justice; cultural competencies; effective
communication; parent relationships; board and management relationships; community
partnerships; charter contract and authorizer relationships; and public accountability.
new text end

new text begin (c) A person serving as a new charter school director with a valid administrator's license
must complete a minimum of eight hours of competency-based training during their first
year of employment on the following: charter school law and requirements, board and
management relationships, and charter contract and authorizer relationships.
new text end

new text begin (d) The training a person must complete under paragraphs (b) and (c) may not be
self-instructional. The organization or instructor providing the training must certify successful
completion of the training. The person must submit the certification of successful completion
of training to the charter school board of directors and certifications must be maintained in
the personnel file. Successful completion of requisite training must be a component of
annual performance evaluations.
new text end

new text begin (e) A charter school's annual report must document the school director's professional
development training completed in the previous academic year.
new text end

new text begin (f) No charter school administrator may serve as a paid administrator or consultant with
another charter school without the knowledge and approval of the board of directors of the
charter schools involved in such an arrangement.
new text end

Sec. 21.

Minnesota Statutes 2018, section 124E.14, is amended to read:


124E.14 CONFLICTS OF INTEREST.

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

(1) the board member, employee, officer, or agent;

(2) the immediate family of the board member, employee, officer, or agent;

(3) the partner of the board member, employee, officer, or agent; or

(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 charter school is contracting. A
violation of this prohibition renders the contract void.

(b) The conflict of interest provisions under this section do not apply to compensation
paid to a teacher employed as a teacher by the charter school or a teacher who provides
instructional services to the charter school through a cooperative formed under chapter
308A when the teacher also serves on the charter school board of directors.

(c) A charter school board member, employee, or officer is a local official for purposes
of section 471.895 with regard to receipt of gifts as defined under section 10A.071,
subdivision 1
, paragraph (b). A board member, employee, or officer must not receive
compensation from a group health insurance provider.

new text begin (d) No charter school board member, employee, or teacher employed under a contract
with a cooperative may serve on the board, be employed by, or serve as a paid consultant
for the school's authorizer.
new text end

Sec. 22.

Minnesota Statutes 2018, section 124E.16, is amended to read:


124E.16 REPORTS.

Subdivision 1.

Audit report.

(a) A charter school is subject to the same financial audits,
audit procedures, and audit requirements as a district, except as required under this
subdivision. Audits must be conducted in compliance with generally accepted governmental
auditing standards, the federal Single Audit Act, if applicable, and section 6.65 governing
auditing procedures. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06 governing government property
and financial investments; and sections 471.38; 471.391; 471.392; and 471.425 governing
municipal contracting. The audit must comply with the requirements of sections 123B.75
to 123B.83 governing school district finance, except when the commissioner and authorizer
approve a deviation made necessary because of school program finances. The commissioner,
state auditor, legislative auditor, or authorizer may conduct financial, program, or compliance
audits. A charter school in statutory operating debt under sections 123B.81 to 123B.83 must
submit a plan under section 123B.81, subdivision 4.

(b) The charter school must submit an audit report to the commissioner and its authorizer
annually by December 31.

(c) The charter school, with the assistance of the auditor conducting the audit, must
include with the report, as supplemental information: (1) a copy ofnew text begin a newnew text end management
deleted text begin agreementsdeleted text endnew text begin agreement or an amendment to a current agreementnew text end with a deleted text begincharter management
organization or an educational management organization and (2) service agreements or
contracts over the lesser of $100,000 or ten percent of the school's most recent annual audited
expenditures
deleted text endnew text begin CMO or EMO signed during the audit year; and (2) a copy of a service
agreement or contract with a company or individual totaling over five percent of the audited
expenditures for the most recent audit year
new text end. The agreements must detail the terms of the
agreement, including the services provided and the annual costs for those services. deleted text beginIf the
entity that provides the professional services to the charter school is exempt from taxation
under section 501 of the Internal Revenue Code of 1986, that entity must file with the
commissioner by February 15 a copy of the annual return required under section 6033 of
the Internal Revenue Code of 1986.
deleted text end

(d) A charter school independent audit report shall include audited financial data of an
affiliated building corporation under section 124E.13, subdivision 3, or other component
unit.

(e) If the audit report finds that a material weakness exists in the financial reporting
systems of a charter school, the charter school must submit a written report to the
commissioner explaining how the charter school will resolve that material weakness. An
auditor, as a condition of providing financial services to a charter school, must agree to
make available information about a charter school's financial audit to the commissioner and
authorizer upon request.

Subd. 2.

Annual public reports.

(a) A 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,
new text begin management agreements with a CMO or EMO, new text endacademic performance, innovative practices
and implementation, and future plans. A charter school may combine this report with the
reporting required under section 120B.11 governing the world's best workforce. A charter
school must post the annual report on the school's official website. A charter school also
must distribute the annual report by publication, mail, or electronic means to its authorizer,
school employees, and parents and legal guardians of students enrolled in the charter school.
The reports are public data under chapter 13.

(b) An authorizer must submit an annual public report in a manner specified by the
commissioner by January 15 for the previous school year ending June 30 that shall at least
include key indicators of school academic, operational, and financial performance. The
report is part of the system to evaluate authorizer performance under section 124E.05,
subdivision 5
.

new text begin Subd. 3. new text end

new text begin Public accounting and reporting CMO and EMO agreements. new text end

new text begin (a) A charter
school that enters into a management agreement with a CMO or EMO must:
new text end

new text begin (1) publish on its website for at least 20 business days the proposed final agreement for
public review and comment before the school board may adopt the contract or agreement.
Any changes made to the posted agreement during the public review period or any proposed
amendments to the agreement once adopted must be posted for 20 business days before the
board may adopt the amendments to the contract;
new text end

new text begin (2) annually publish on its website a statement of assurance that no member of the school
board, staff, or any agent of the school has been promised or received any form of
compensation or gifts from the CMO or EMO and that no board member, employee, or
agent of the CMO or EMO or any of the organization affiliates or providers serve on the
charter school board; and
new text end

new text begin (3) conduct an independent review and evaluation of the services provided by the CMO
or EMO and publish the evaluation on the school's website at least 30 business days before
the end of the current contract.
new text end

new text begin (b) A management agreement with a CMO or EMO must contain the following:
new text end

new text begin (1) the term of the contract, not to exceed five years;
new text end

new text begin (2) the total dollar value of the contract including the annual projected costs of services;
new text end

new text begin (3) a description and terms of the services to be provided during the term of the contract;
new text end

new text begin (4) notice that a charter school closure during the term of the contract by action of the
authorizer or the school's board results in the balance of the current contract becoming null
and void;
new text end

new text begin (5) an annual statement of assurance to the charter school board that the CMO or EMO
provided no compensation or gifts to any charter school board member, staff member, or
agent of the charter school;
new text end

new text begin (6) an annual statement of assurance that no charter school board member, employee,
contractor, or agent of the CMO or EMO or any affiliated organization is a board member
of the charter school or any other charter school;
new text end

new text begin (7) the policies and protocols that meet federal and state laws regarding student and
personnel data collection, usage, access, retention, disclosure and destruction, and
indemnification and warranty provisions in case of data breaches by the CMO or EMO;
new text end

new text begin (8) the CMO or EMO must annually provide the charter school board a financial report
by July 31 that accounts for income and expenditures for the previous fiscal year using the
account categories in uniform financial accounting and reporting standards; and
new text end

new text begin (9) an annual assurance that all assets purchased on behalf of the charter school using
public funds remain assets of the school.
new text end

new text begin (c) Any agreement with a CMO or EMO containing any of the following provisions is
null and void:
new text end

new text begin (1) restrictions on the charter school's ability to operate a school upon termination of
the agreement;
new text end

new text begin (2) restrictions on the annual or total amount of the school's operating surplus or fund
balance;
new text end

new text begin (3) authorization to allow a CMO or EMO to withdraw funds from a charter school
account; or
new text end

new text begin (4) authorization to allow a CMO or EMO to loan funds to the charter school.
new text end

new text begin (d) A CMO or EMO or its affiliates, employees, or agents may not contract with, be
employed by, or serve on the board of an authorizer. An authorizer or its affiliates, employees,
or agents may not contract with, be employed by, serve as a paid consultant for, or serve as
a board member of a CMO or EMO.
new text end

Sec. 23.

Minnesota Statutes 2018, section 124E.17, subdivision 1, is amended to read:


Subdivision 1.

Charter school information.

(a) deleted text beginCharter schools must disseminate
information about how to use the charter school offerings to targeted groups, among others.
Targeted groups include low-income families and communities, students of color, and
students who are at risk of academic failure.
deleted text endnew text begin A charter school must conduct outreach and
disseminate information on the school's offerings and enrollment procedure to families that
reflect the diversity of Minnesota's population and targeted groups. Targeted groups include
low-income families and communities, students of color, students at risk of academic failure,
and students underrepresented in the school's student body relative to Minnesota's population.
A charter school must document its ongoing outreach and information dissemination activities
in the charter school's annual report and must be a component of the authorizer's performance
review of the school.
new text end

(b) Authorizers and the commissioner must disseminate information to the public on
how to form and operate a charter school. Authorizers, operators, and the commissioner
also may disseminate information to interested stakeholders about the successful best
practices in teaching and learning demonstrated by charter schools.