1.1 	A bill for an act
1.2 	relating to education; eliminating the commissioner of
1.3 	education as an eligible charter school sponsor;
1.4 	amending Minnesota Statutes 2004, section 124D.10,
1.5 	subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 124D.10,
1.8 	subdivision 4, is amended to read:
1.9 		Subd. 4.Formation of school.  (a) A sponsor may
1.10 	authorize one or more licensed teachers under section 122A.18,
1.11 	subdivision 1, to operate a charter school subject to approval
1.12 	by the commissioner.  A board must vote on charter school
1.13 	application for sponsorship no later than 90 days after
1.14 	receiving the application.  After 90 days, the applicant may
1.15 	apply to the commissioner.  If a board elects not to sponsor a
1.16 	charter school, the applicant may appeal the board's decision to
1.17 	the commissioner.  The commissioner , who may elect to sponsor
1.18 	the charter school or assist the applicant in finding an
1.19 	eligible sponsor.  The school must be organized and operated as
1.20 	a cooperative under chapter 308A or nonprofit corporation under
1.21 	chapter 317A and the provisions under the applicable chapter
1.22 	shall apply to the school except as provided in this section.
1.23 	Notwithstanding sections 465.717 and 465.719, a school district
1.24 	may create a corporation for the purpose of creating a charter
1.25 	school.
2.1 	(b) Before the operators may form and operate a school, the
2.2 	sponsor must file an affidavit with the commissioner stating its
2.3 	intent to authorize a charter school.  The affidavit must state
2.4 	the terms and conditions under which the sponsor would authorize
2.5 	a charter school.  The commissioner must approve or disapprove
2.6 	the sponsor's proposed authorization within 60 days of receipt
2.7 	of the affidavit.  Failure to obtain commissioner approval
2.8 	precludes a sponsor from authorizing the charter school that was
2.9 	the subject of the affidavit.
2.10 	(c) The operators authorized to organize and operate a
2.11 	school, before entering into a contract or other agreement for
2.12 	professional or other services, goods, or facilities, must
2.13 	incorporate as a cooperative under chapter 308A or as a
2.14 	nonprofit corporation under chapter 317A and must establish a
2.15 	board of directors composed of at least five members until a
2.16 	timely election for members of the charter school board of
2.17 	directors is held according to the school's articles and
2.18 	bylaws.  A charter school board of directors must be composed of
2.19 	at least five members.  Any staff members who are employed at
2.20 	the school, including teachers providing instruction under a
2.21 	contract with a cooperative, and all parents of children
2.22 	enrolled in the school may participate in the election for
2.23 	members of the school's board of directors.  Licensed teachers
2.24 	employed at the school, including teachers providing instruction
2.25 	under a contract with a cooperative, must be a majority of the
2.26 	members of the board of directors before the school completes
2.27 	its third year of operation, unless the commissioner waives the
2.28 	requirement for a majority of licensed teachers on the board.
2.29 	Board of director meetings must comply with chapter 13D.
2.30 	(d) The granting or renewal of a charter by a sponsoring
2.31 	entity must not be conditioned upon the bargaining unit status
2.32 	of the employees of the school.
2.33 	(e) A sponsor may authorize the operators of a charter
2.34 	school to expand the operation of the charter school to
2.35 	additional sites or to add additional grades at the school
2.36 	beyond those described in the sponsor's application as approved
3.1 	by the commissioner only after submitting a supplemental
3.2 	application to the commissioner in a form and manner prescribed
3.3 	by the commissioner.  The supplemental application must provide
3.4 	evidence that:
3.5 	(1) the expansion of the charter school is supported by
3.6 	need and projected enrollment;
3.7 	(2) the charter school is fiscally sound;
3.8 	(3) the sponsor supports the expansion; and
3.9 	(4) the building of the additional site meets all health
3.10 	and safety requirements to be eligible for lease aid.
3.11 	(f) The commissioner annually must provide timely financial
3.12 	management training to newly elected members of a charter school
3.13 	board of directors and ongoing training to other members of a
3.14 	charter school board of directors.  Training must address ways
3.15 	to:
3.16 	(1) proactively assess opportunities for a charter school
3.17 	to maximize all available revenue sources;
3.18 	(2) establish and maintain complete, auditable records for
3.19 	the charter school;
3.20 	(3) establish proper filing techniques;
3.21 	(4) document formal actions of the charter school,
3.22 	including meetings of the charter school board of directors;
3.23 	(5) properly manage and retain charter school and student
3.24 	records;
3.25 	(6) comply with state and federal payroll record-keeping
3.26 	requirements; and
3.27 	(7) address other similar factors that facilitate
3.28 	establishing and maintaining complete records on the charter
3.29 	school's operations.
3.30 	
EFFECTIVE DATE. This section is effective January 1,
3.31 	2007, and applies to all new charter school contracts and
3.32 	sponsorship agreements entered into on or after that date.