HF 640

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 08:47pm

A bill for an act
relating to education finance; modifying charter school financing; amending
Minnesota Statutes 2012, sections 124D.10, subdivision 25; 127A.45, by adding
a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 124D.10, subdivision 25, is amended to
read:

Subd. 25.

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 and the commissioner before starting
operations. The charter school board must submit changes in its insurance carrier or policy
to its authorizer and the commissioner within 20 business days of the change.

(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 may borrow money in the following manner and subject to the
following limitations in anticipation of receipt of state aids for schools as defined in
Minnesota Statutes or federal school aid distributed by or through the Department of
Education. The aggregate borrowing under this paragraph shall not exceed the greater
of (1) 50 percent or (2) the difference between 100 percent and the current year aid
payment under section 127A.45, subdivision 2, paragraph (d), of the aids, fees, and
tuition payments receivable by the charter school in the fiscal year in which the money is
borrowed as estimated and certified by the commissioner. If the charter school proposes
to sell all or a portion of the estimated and certified aid, it must give public notice of the
proposed sale on its official Web site for at least 15 business days before the proposed sale.
At the time the board intends to sell all or a portion of the anticipated aid, the anticipated
aid must be sold to the buyer who will agree to purchase the aid on the terms deemed
most favorable to the charter school. The terms of any sale of anticipated aid are public
data under chapter 13. The money received from the sale of the anticipated aid must be
disbursed solely for the purpose that the aid is intended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end

Sec. 2.

Minnesota Statutes 2012, section 127A.45, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Charter current year aid payment. new text end

new text begin Notwithstanding subdivision 2,
paragraph (d), or section 124D.11, subdivision 1, the current year aid payment percentage
equals 90 for a charter school in its first five years of operation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end