SF 852

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:16am

A bill for an act
relating to education; amending charter school provisions; amending Minnesota
Statutes 2008, section 124D.10, subdivisions 3, 15.

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

Section 1.

Minnesota Statutes 2008, section 124D.10, subdivision 3, is amended to
read:

Subd. 3.

Sponsor.

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

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

new text begin (c) Based on the recommendation of New Schools Minnesota, the commissioner may
approve up to three charitable organizations formed under section 501(c)(3) of the Internal
Revenue Code of 1986 that will sponsor charter schools as their sole charitable purpose.
Eligible organizations interested in being approved as a sponsor under this paragraph must
submit a proposal to the commissioner that includes the provisions of paragraph (e).
new text end

new text begin (d) All organizations provided for in this section shall have their sponsoring
plan reviewed by the commission on New Schools Minnesota and approved by the
commissioner consistent with the provisions of this section in order for these organizations
to sponsor chartered schools. Commissioner approval shall be up to a maximum of five
years. Organizations approved as sponsors shall have their authority renewed every five
years as provided for in this section in order for them to continue to sponsor chartered
schools.
new text end

new text begin (e) Effective July 1, 2010, an organization defined in this subdivision as being
eligible to grant charters to schools, but is not currently sponsoring any schools, shall have
its sponsoring plan approved by the commissioner prior to that organization becoming
eligible to grant charters. The plan to be submitted to the commissioner, and reviewed by
New Schools Minnesota, shall include at least the following:
new text end

new text begin (1) how sponsoring schools is a way for the organization to carry out its mission.
If the organization is a private nonprofit, it shall identify its board of directors and
administration and the articles and bylaws of the organization;
new text end

new text begin (2) a description of the capacity of the organization to serve as a sponsor including
the personnel who will perform the sponsoring duties, their qualifications, the amount of
time they will be assigned to this responsibility, and financial resources allocated by the
organization to this responsibility;
new text end

new text begin (3) a description of the application and review process the sponsor will use to make
decisions regarding the granting of charters which will include at least the following:
new text end

new text begin (i) how one or more of the statutory purposes defined in subdivision 1 are addressed;
new text end

new text begin (ii) the mission, goals, program model, and student performance expectations;
new text end

new text begin (iii) an evaluation plan for the school;
new text end

new text begin (iv) the school's governance plan;
new text end

new text begin (v) the financial management plan; and
new text end

new text begin (vi) the administration and operations plan.
new text end

new text begin (4) a description of the type of contract it will arrange with the schools it sponsors
that meets the provisions of subdivision 6;
new text end

new text begin (5) the process to be used for providing ongoing oversight of the school consistent
with the contract expectations specified in clause (4) that assures that the schools sponsored
are complying with both the provisions of applicable law and rules, and with the contract;
new text end

new text begin (6) the process for making decisions regarding the renewal or termination of the
schools charter based on it meeting the performance contract specified in clause (4); and
new text end

new text begin (7) an assurance specifying that the organization is committed to serving as a
sponsor for the full five-year term.
new text end

new text begin (f) Not later than June 30, 2011, all organizations that are sponsoring chartered
schools prior to June 30, 2010, and intend to continue to serve as a sponsor must be
approved by the commissioner based on the recommendations of New Schools Minnesota
consistent with the provisions of paragraph (e). The commissioner may grant an extension
of up to one year to a sponsoring organization to meet the sponsor requirements. If,
following a review by New Schools Minnesota, the commissioner determines that an
organization fails to meet the provisions of this section, the commissioner shall either
withdraw the authority of the organization to charter schools or shall place the sponsor
on probation for a maximum of one year while the organization modifies its sponsoring
process so that it is compliant with this section.
new text end

new text begin (g) Following approval of an organization to serve as a sponsor, the commissioner
shall conduct oversight of the approved sponsors and may withdraw that authority for any
of the following reasons:
new text end

new text begin (1) failure to conduct its sponsoring duties consistent with its approved application;
new text end

new text begin (2) violations of law; or
new text end

new text begin (3) other good cause shown by the commissioner.
new text end

new text begin The commissioner may determine whether to place the sponsoring organization on
probation for a maximum of one year or to immediately withdraw the authority of the
organization to serve as a sponsor.
new text end

new text begin (h) If the commissioner withdraws the authority of an organization to sponsor
schools, the commissioner will inform the sponsoring organization and schools sponsored
by the organization of this decision. The school may immediately request an approved
organization to serve as the school's sponsor. If no organization agrees to sponsor
the school, the commissioner shall assign the school to a sponsor approved under the
provisions of paragraph (c) which shall serve as the sponsor of the school.
new text end

new text begin (i) Not later than June 30, 2010, the commissioner shall assign schools being
sponsored by the department to a sponsor approved under the provisions of paragraph
(c) which shall serve as the sponsor of the school if those schools have not entered into
agreements with other approved sponsors.
new text end

Sec. 2.

Minnesota Statutes 2008, section 124D.10, subdivision 15, is amended to read:

Subd. 15.

Review and comment.

(a) The department must review and comment on
the evaluation, by the sponsor, of the performance of a charter school before the charter
school's contract is renewed for another contract term. The sponsor must submit to the
commissioner timely information for the review and comment.

(b) A sponsor shall monitor and evaluate the fiscal and student performance of the
school new text begin and the provisions of the contract between the school and the sponsor. Sponsors
that have been approved by the commissioner as provided by subdivision 3, paragraph
(e) or (f) new text end , and may for this purpose annually assess a charter school new text begin as follows new text end : (1) in its
first, second, or third year of operation up to $30 per student up to a maximum of $10,000;
and (2) in its fourth or a subsequent year of operation up to $10 per student up to a
maximum of $3,500. new text begin Sponsors that have been approved by the commissioner as provided
by subdivision (3), paragraph (e) or (f), may annually assess the school up to one percent
of the formula allowance with a minimum of $5,000 and a maximum of $10,000 for each
of the first five years of the schools operation with students and a minimum of $8,500 and
a maximum of $12,000 for the year the contract is being evaluated for renewal.
new text end

new text begin (c) If after the first contract renewal the school is meeting the requirements of the
contract, the sponsoring fee will be up to .75 percent of the formula allowance with a
minimum of $3,500 and a maximum of $7,500.
new text end

new text begin (d) If after the contract renewal the commissioner determines that the school has not
fully met each of the provisions of the contract but has made significant progress toward
meeting the requirements of the contract, or if at some point in the future the school does
not meet the provisions of the contract, the fee will be as provided for in paragraph (b).
new text end

new text begin (e) The minimum and maximum amounts in the above will be recalculated annually
by the commissioner based on the percentage change in the general education formula.
new text end

new text begin (f) The annual fee is based on the average daily membership of the school for the
year. The commissioner shall deduct the sponsor fee from the general education revenue
payable to the charter school and shall pay that amount directly to the applicable sponsor
using a process and timeline to be determined by the commissioner.
new text end

new text begin (g) The commissioner shall charge the schools sponsored by the Department of
Education the fees provided for in this section. Revenue from department sponsorship
shall be accrued to the department to be used for expenses relating to sponsorship duties
of the schools sponsored.
new text end

new text begin (h) By August 1 of each year, a sponsor shall report to each of the schools it sponsors
and to the commissioner regarding its sponsoring activities and the amount it spent on
sponsoring activities for the previous fiscal year. The commissioner will determine the
format for this report.
new text end