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HF 2714

as introduced - 87th Legislature (2011 - 2012) Posted on 03/07/2012 02:15pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/07/2012

Current Version - as introduced

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A bill for an act
relating to education; fostering charter school accountability and success;
appropriating money; amending Minnesota Statutes 2010, section 124D.11, by
adding a subdivision; Minnesota Statutes 2011 Supplement, sections 124D.10,
subdivisions 4, 6, 10, 11, 15, 23; 124D.11, subdivision 9.

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

Section 1.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4,
is amended to read:


Subd. 4.

Formation of school.

(a) An authorizer, after receiving an application from
a school developer, may charter 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 paragraph (b). The school must be organized and operated as a
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 and section 124D.11, may create a corporation for the purpose of establishing a
charter school.

(b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. The affidavit must
state the terms and conditions under which the authorizer would charter a school and
how the authorizer intends to oversee the fiscal and student performance of the charter
school and to comply with the terms of the written contract between the authorizer
and the charter school board of directors under subdivision 6. The commissioner must
approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
days to address the deficiencies. If the authorizer does not address deficiencies to the
commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
commissioner approval precludes an authorizer from chartering the school that is the
subject of this affidavit.

(c) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.

(d) 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 nonprofit corporation under chapter 317A and must establish a board of
directors composed of at least five members who are not related parties deleted text beginuntildeleted text endnew text begin. The board of
directors may serve as the ongoing board of directors for the charter school or may decide
to hold
new text end a timely election for deleted text beginmembers of the ongoingdeleted text endnew text begin anew text end charter school board of directors
deleted text begin is held according todeleted text endnew text begin, consistent withnew text end the school's articles and bylaws under paragraph (f).
A charter school board of directors must be composed of at least five members who are
not related parties.new text begin If an election for a board of directors is held,new text end staff members employed
at the school, including teachers providing instruction under a contract with a cooperative,
and all parents or legal guardians of children enrolled in the school are thenew text begin only eligiblenew text end
voters deleted text begineligible to elect the members of the school's board of directorsdeleted text end. A charter school
must notify eligible voters of the school board election dates at least 30 days before the
election. Board of director meetings must comply with chapter 13D.

(e) Upon the request of an individual, the charter school must make available in
a timely fashion the minutes of meetings of the board of directors, and of members
and committees having any board-delegated authority; financial statements showing all
operations and transactions affecting income, surplus, and deficit during the school's last
annual accounting period; and a balance sheet summarizing assets and liabilities on the
closing date of the accounting period. A charter school also must post on its official Web
site information identifying its authorizer and indicate how to contact that authorizer and
include that same information about its authorizer in other school materials that it makes
available to the public.

(f) Every charter school board member shall attend department-approved ongoing
training throughout the member's term on board governance, including training on
the board's role and responsibilities, employment policies and practices, and financial
management. A board member who does not begin the required initial training within six
months after being seated and complete that training within 12 months of being seated on
the board is ineligible to continue to serve as a board member.

(g) deleted text beginThe ongoing board must be elected before the school completes its third year of
operation. Board elections
deleted text endnew text begin If an election is held for a board of directors under paragraph
(d), it
new text end must be held during the school year but may not be conducted on days when the
school is closed for holidays or vacations. deleted text beginThedeleted text endnew text begin Anew text end charter school board of directors shall be
composed of at least five nonrelated members and include: (i) at least one licensed teacher
employed at the school or a licensed teacher providing instruction under contract between
the charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled
in the charter school who is not an employee of the charter school; and (iii) an interested
community member who is not employed by the charter school and does not have a child
enrolled in the school. Thenew text begin electednew text end board may be a teacher majority board composed of
teachers described in this paragraph. The chief financial officer and the chief administrator
may only serve as ex-officio nonvoting board members and may not serve as a voting
member of the board. Charter school employees shall not serve on deleted text beginthedeleted text endnew text begin a charter schoolnew text end
board unless item (i) applies. Contractors providing facilities, goods, or services to a
charter school shall not serve on the board of directors of the charter school. Board bylaws
shall outline the process and procedures for changing the board's governance modelnew text begin
and for replacing an elected board with a board appointed by the nonprofit corporation
operating the charter school
new text end, consistent with chapter 317A. A board may change its
governance modelnew text begin or replace an elected board with an appointed boardnew text end onlydeleted text begin:
deleted text end

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

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

Any change in board governancenew text begin or compositionnew text end must conform with the board
structure established under this paragraphnew text begin and paragraph (d)new text end.

(h) The granting or renewal of a charter by an authorizer must not be conditioned
upon the bargaining unit status of the employees of the school.

(i) The granting or renewal of a charter school by an authorizer must not be
contingent on the charter school being required to contract, lease, or purchase services
from the authorizer. Any potential contract, lease, or purchase of service from an
authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.

(j) An authorizer may permit the board of directors 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 authorizer's original affidavit as approved by
the commissioner only after submitting a supplemental affidavit for approval to the
commissioner in a form and manner prescribed by the commissioner.new text begin An additional site
approved by the commissioner is eligible to receive available start-up aid including
preoperational start-up aid under section 124D.11, subdivision 8a.
new text end The supplemental
affidavit must document that:

(1) the proposed expansion plan demonstrates need and projected enrollment;

(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
students' improved academic performance and growth on statewide assessments under
chapter 120B;

(3) the charter school is financially sound and the financing it needs to implement
the proposed expansion exists; and

(4) the charter school has the governance structure and management capacity to
carry out its expansion.

(k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
the supplemental affidavit and the authorizer then has 20 business days to address, to the
commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
may not expand grades or add sites until the commissioner has approved the supplemental
affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 2.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
amended to read:


Subd. 6.

Charter contract.

The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:

(1) a declaration of the purposes in subdivision 1 that the school intends to carry out
and how the school will report its implementation of those purposes;

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

(3) a statement of admission policies and procedures;

(4) a governance, management, and administration plan for the school;

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

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

(7) the performance evaluation that is a prerequisite for reviewing a charter contract
under subdivision 15new text begin and requires, in the previous three consecutive school years, that
at least 35 percent of all tested students demonstrate proficiency in state reading and
mathematics assessments or that the percent of students demonstrating "on-track" growth
in reading and mathematics under subdivision 23, paragraph (e), meets or exceeds the
statewide average for the same grade span, unless the charter school serves only students
eligible to participate in the graduation incentives program under section 124D.68, or 50
percent or more of enrolled students are eligible students with disabilities
new text end;

(8) types and amounts of insurance liability coverage to be obtained by the charter
school;

(9) consistent with subdivision 25, paragraph (d), a provision to 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 notwithstanding section 3.736;

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

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

(12) the process and criteria the authorizer intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15; and

(13) the plan for an orderly closing of the school under chapter 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 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 3.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 10, is
amended to read:


Subd. 10.

Pupil performance.

new text begin(a) new text endA charter school must design its programs to at
least meet the outcomes adopted by the commissioner for public school studentsdeleted text begin. In the
absence of the commissioner's requirements, the school must meet the
deleted text endnew text begin and any additionalnew text end
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 (b) Consistent with section 124D.095, and notwithstanding subdivision 11, paragraph
(a), a charter school may use blended learning to deliver differentiated instruction and
improve outcomes for diverse groups of students. Blended learning occurs when (1) a
student learns part time in a supervised physical setting and part time through digital
delivery of instruction or (2) a student learns full time in a supervised physical setting
where technology is used to deliver instruction. A licensed teacher need not be physically
present to supervise the delivery of differentiated instruction under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 4.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 11, is
amended to read:


Subd. 11.

Employment and other operating matters.

(a) A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
whonew text begin:new text end hold valid licenses to perform the particular service for which they are employed in
the schoolnew text begin; or hold valid out-of-state teaching licenses or have completed an alternative
teacher preparation and licensure program in Minnesota or another state and have taught
full time for at least two school years in a school where 50 percent or more of enrolled
students were eligible to receive a free or reduced price lunch
new text end. The 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 teachingnew text begin or fails to meet the other
requirements of this paragraph
new text end. 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
charter school board is subject to section 181.932. When offering employment to a
prospective employee, a charter school must give that employee a written description of
the terms and conditions of employment and the school's personnel policies.

new text begin (b) Notwithstanding paragraph (a) or other law to the contrary, a charter school may
employ or contract with necessary nonlicensed teachers for a five-year period if in two of
the previous three consecutive school years:
new text end

new text begin (1) the percent of tested students enrolled in the charter school that demonstrated
proficiency and "on-track" growth on state reading and mathematics assessments under
subdivision 23, paragraph (e), meets or exceeds statewide averages for the same grade
span served by the school; or
new text end

new text begin (2) where 50 percent or more of students enrolled in the charter school were eligible
to receive a free or reduced price lunch, the percent of tested students enrolled in the
charter school that demonstrated proficiency or "on-track" growth on state reading and
mathematics assessments under subdivision 23, paragraph (e), meets or exceeds statewide
averages for the same grade span served by the school.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end 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 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.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 5.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, is
amended to read:


Subd. 15.

Review and comment.

(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 and each time the authorizer
undergoes its five-year review under subdivision 3, paragraph (e).

(b) An authorizer shall monitor and evaluate the fiscal, operational, and student
performance of the school, and may for this purpose annually assess a charter school
a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
charter school contract.new text begin The commissioner must deduct from the general education
program revenue of a charter school the amount of the agreed-upon fee assessed under this
subdivision and transmit that amount to the charter school's authorizer.
new text end

(c) The fee that each charter school pays to an authorizer each year is the greater of:

(1) the basic formula allowance for that year; or

(2) the lesser of:

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

(ii) the fee factor times the basic formula allowance for that year times the 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.

(d) The department and any charter school it charters must not assess or pay a fee
under paragraphs (b) and (c).

(e) For the preoperational planning period, the authorizer may assess a charter school
a fee equal to the basic formula allowance.

(f) 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 6.

Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 23, is
amended to read:


Subd. 23.

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 6. 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 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 that the
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 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. 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.

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

(1) failure to meet 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 a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 317A.

(c) If the authorizer and the 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 change to a different eligible authorizer to authorize the 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 must inform
the proposed authorizer about the fiscal and operational status and student performance
of the school. Before the commissioner determines whether to approve a change in
authorizer, the proposed authorizer must identify any outstanding issues in the proposed
charter contract that were unresolved in the previous charter contract and have the charter
school agree to resolve those issues. If no change in authorizer is approved, the school
must be dissolved according to applicable law and the terms of the contract.

(d) 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.

new text begin (e) Notwithstanding other provisions of this subdivision, the commissioner must
terminate an existing contract between an authorizer and the charter school at the end
of the current school year, after notifying the charter school board of directors and its
authorizer, if in each of the previous three consecutive school years the charter school (1)
had less than 35 percent of all tested students demonstrate proficiency in state reading and
mathematics assessments and (2) had a lower percent of students demonstrate "on-track"
growth in state reading and mathematics assessments than the statewide average for the
same grade span served by the school. Consistent with subdivision 6, clause (7), this
paragraph does not apply to a charter school serving only students eligible to participate in
the graduation incentives programs under section 124D.68, or where 50 percent or more
of enrolled students are eligible students with disabilities.
new text end

new text begin "On-track" growth for purposes of this section means students who have
demonstrated proficiency and medium or high growth on state reading and mathematics
assessments or students who have not demonstrated proficiency but have demonstrated
high growth on state reading and mathematics assessments.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2012-2013 school year and
later.
new text end

Sec. 7.

Minnesota Statutes 2010, section 124D.11, is amended by adding a subdivision
to read:


new text begin Subd. 8a. new text end

new text begin Preoperational start-up costs. new text end

new text begin At the time the commissioner approves
an authorizer's affidavit under section 124D.10, subdivision 3, paragraph (a), an eligible
charter school must receive $200,000 in aid for start-up costs in its preoperational year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payments for fiscal years
2013 and later.
new text end

Sec. 8.

Minnesota Statutes 2011 Supplement, section 124D.11, subdivision 9, is
amended to read:


Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section
127A.45, subdivision 3, ifnew text begin:
new text end

new text begin (1)new text end the current year aid payment percentage under section 127A.45, subdivision 2,
paragraph (d), is 90 or greaterdeleted text begin,deleted text endnew text begin; or
new text end

new text begin (2) the charter school is in its first three years of operation, then thenew text end aid payments
for the current fiscal year to a charter school shall be of an equal amount on each of the
24 payment dates. Notwithstanding section 127A.45, subdivision 3, if the current year
aid payment percentage under section 127A.45, subdivision 2, paragraph (d), is less
than 90, aid payments for the current fiscal year to a charter schoolnew text begin in its fourth or later
year of operation
new text end shall be of an equal amount on each of the 16 payment dates in July
through February.

(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
operation on or prior to June 30 of a school year, for the payment periods occurring after
the school ceases serving students, the commissioner shall withhold the estimated state aid
owed the school. The charter school board of directors and authorizer must submit to the
commissioner a closure plan under chapter 308A or 317A, and financial information about
the school's liabilities and assets. After receiving the closure plan, financial information,
an audit of pupil counts, documentation of lease expenditures, and monitoring of special
education expenditures, the commissioner may release cash withheld and may continue
regular payments up to the current year payment percentages if further amounts are
owed. If, based on audits and monitoring, the school received state aid in excess of the
amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
overpayment. For a charter school ceasing operations prior to, or at the end of, a school
year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
be made after receiving the closure plan, audit of pupil counts, monitoring of special
education expenditures, documentation of lease expenditures, and school submission of
Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
final year of operation. Final payment may be made upon receipt of audited financial
statements under section 123B.77, subdivision 3.

(c) If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.

(d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.

(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.

(f) In order to receive state aid payments under this subdivision, a charter school in
its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.

(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

(h) A charter school must have a valid, signed contract under section 124D.10,
subdivision 6, on file at the Department of Education at least 15 days prior to the date of
first payment of state aid for the fiscal year.

(i) State aid entitlements shall be computed for a charter school only for the
portion of a school year for which it has a valid, signed contract under section 124D.10,
subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payments for fiscal years
2013 and later.
new text end

Sec. 9. new text beginAPPROPRIATION; PREOPERATIONAL START-UP COSTS.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of education in
fiscal year 2013 for purposes of preoperational start-up aid under Minnesota Statutes,
section 124D.11, subdivision 8a.
new text end