Bill Text: MN SF1185 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Collaborative charter school establishment option
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-04-14 - Referred to Education [SF1185 Detail]
Download: Minnesota-2011-SF1185-Introduced.html
1.2relating to education finance; creating an option for a school district-sponsored
1.3collaborative charter school designed to enhance student achievement;proposing
1.4coding for new law in Minnesota Statutes, chapter 124D.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [124D.105] COLLABORATIVE CHARTER SCHOOL.
1.7 Subdivision 1. Creation. The board of directors of an independent or special school
1.8district may create and sponsor a collaborative charter school according to the provisions
1.9of this section. The board is subject to the requirements for charter school authorizers
1.10under section 124D.10.
1.11 Subd. 2. Formation of school. (a) A school board intending to form a collaborative
1.12charter school must adopt a written resolution authorizing the formation of the school.
1.13The school may be formed either by: (1) adopting a memorandum of understanding from
1.14the exclusive bargaining representative of the district's teachers regarding the employment
1.15status of teachers at the collaborative charter school; or (2) contracting with a party
1.16otherwise eligible to be a sponsor or a charter school under section 124D.10. A district
1.17may form a voluntary collaborative partnership with a charter school that is currently
1.18authorized by another authorizer.
1.19(b) The school must be organized and operated as a cooperative under chapter 308A
1.20or nonprofit corporation under chapter 317A and the provisions under the applicable
1.21chapter shall apply to the school except as provided in this section. Notwithstanding
1.22sections 465.717 and 465.719, a school district subject to this section may create a
1.23corporation for the purpose of establishing a collaborative charter school.
2.1 Subd. 3. Conflict of interest. (a) An individual is prohibited from serving as
2.2a member of the collaborative charter school board of directors if the individual, an
2.3immediate family member, or the individual's partner is an owner, employee, or agent of
2.4or a contractor with a for-profit or nonprofit entity with whom the collaborative charter
2.5school contracts, directly or indirectly, for professional services, goods, or facilities. A
2.6violation of this prohibition renders a contract voidable at the option of the commissioner
2.7or the collaborative charter school board of directors. A member of a collaborative
2.8charter school board of directors who violates this prohibition is individually liable to the
2.9collaborative charter school for any damage caused by the violation.
2.10(b) No member of the board of directors, employee, officer, or agent of a
2.11collaborative charter school shall participate in selecting, awarding, or administering a
2.12contract if a conflict of interest exists. A conflict exists when:
2.13(1) the board member, employee, officer, or agent;
2.14(2) the immediate family of the board member, employee, officer, or agent;
2.15(3) a partner of the board member, employee, officer, or agent; or
2.16(4) an organization that employs, or is about to employ, any individual in clauses (1)
2.17to (3), has a financial or other interest in the entity with which the collaborative charter
2.18school is contracting. A violation of this prohibition renders the contract void.
2.19(c) Any employee, agent, or board member of the authorizer who participates in
2.20the initial review, approval, ongoing oversight, evaluation, or the collaborative charter
2.21renewal or nonrenewal process or decision is ineligible to serve on the board of directors
2.22of a school chartered by that authorizer.
2.23(d) The conflict of interest provisions under this subdivision do not apply to
2.24compensation paid to a teacher employed by the collaborative charter school who also
2.25serves as a member of the board of directors.
2.26(e) The conflict of interest provisions under this subdivision do not apply to a
2.27teacher who provides services to a collaborative charter school through a cooperative
2.28formed under chapter 308A when the teacher also serves on the collaborative charter
2.29school board of directors.
2.30 Subd. 4. Conversion of existing schools. (a) A board of an independent or special
2.31school district may convert one or more of its existing schools to collaborative charter
2.32schools under this section if 60 percent of the full-time teachers at the school sign a petition
2.33seeking conversion. The conversion must occur at the beginning of an academic year.
2.34(b) The board of directors of a school district that is an approved charter school
2.35authorizer must not require a charter school that it has authorized to become a collaborative
3.1charter school under this section or otherwise condition the charter school's reauthorization
3.2on the provisions of this section.
3.3 Subd. 5. Charter contract. The authorization for a collaborative charter school
3.4must be in the form of a written contract signed by the authorizer and the board of
3.5directors of the collaborative charter school. The contract must be completed within 45
3.6business days of the adoption of the school board resolution. The authorizer shall submit
3.7to the commissioner a copy of the signed collaborative charter contract within ten business
3.8days of its execution. The contract for a collaborative charter school must be in writing
3.9and contain at least the following:
3.10(1) a declaration of the purposes that the school intends to carry out and how the
3.11school will report its implementation of those purposes;
3.12(2) a description of the school program and the specific academic and nonacademic
3.13outcomes that pupils must achieve;
3.14(3) a statement of admission policies and procedures;
3.15(4) a governance, management, and administration plan for the school;
3.16(5) signed agreements from collaborative charter school board members to comply
3.17with all federal and state laws governing organizational, programmatic, and financial
3.18requirements applicable to collaborative charter schools;
3.19(6) the criteria, processes, and procedures that the authorizer will use for ongoing
3.20oversight of operational, financial, and academic performance;
3.21(7) the performance evaluation that is a prerequisite for reviewing a charter contract
3.22under subdivision 25;
3.23(8) types and amounts of insurance liability coverage to be obtained by the
3.24collaborative charter school;
3.25(9) the term of the contract, which may be up to three years for an initial contract
3.26plus an additional preoperational planning year, and up to five years for a renewed contract
3.27if warranted by the school's academic, financial, and operational performance;
3.28(10) how the board of directors or the operators of the collaborative charter school
3.29will provide special instruction and services for children with a disability under sections
3.30125A.03 to 125A.24 and 125A.65, and a description of the financial parameters within
3.31which the collaborative charter school will operate to provide the special instruction
3.32and services to children with a disability;
3.33(11) the process and criteria the authorizer intends to use to monitor and evaluate
3.34the fiscal and student performance of the collaborative charter school, consistent with
3.35subdivision 25; and
4.1(12) the plan for an orderly closing of the school under chapter 308A or 317A,
4.2if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
4.3the contract, and that includes establishing the responsibilities of the school board of
4.4directors and the authorizer and notifying the commissioner, authorizer, school district in
4.5which the collaborative charter school is located, and parents of enrolled students about
4.6the closure, the transfer of student records to students' resident districts, and procedures
4.7for closing financial operations.
4.8 Subd. 6. Location. A collaborative charter school must be located within the
4.9geographic boundaries of the sponsoring school district of a collaborative school formed
4.10through a memorandum of understanding.
4.11 Subd. 7. Governance. A collaborative charter school formed through a
4.12memorandum of understanding must be governed by a board of directors composed of
4.13at least five members. The collaborative charter school board meetings must comply
4.14with chapter 13D.
4.15 Subd. 8. Governance of collaborative charter school formed under contract.
4.16A collaborative charter school formed under contract with a collaborative charter school
4.17authorizer must be governed according to the provisions specified in the contract, and the
4.18meetings of the collaborative charter school board must comply with chapter 13D.
4.19 Subd. 9. Finances. A collaborative charter school's pupils must be included in
4.20the school district's count of pupils under chapter 126C. The pupils generate funding in
4.21the same manner as all other pupils in the school district. In addition, a collaborative
4.22charter school qualifies for charter school lease aid and startup aid under section 124D.11,
4.23subdivisions 4 and 8.
4.24 Subd. 10. Audit report. (a) The collaborative charter school must submit an audit
4.25report to the commissioner and its authorizer by December 31 each year.
4.26(b) The collaborative charter school, with the assistance of the auditor conducting the
4.27audit, must include with the report a copy of all collaborative charter school agreements
4.28for corporate management services. If the entity that provides the professional services
4.29to the collaborative charter school is exempt from taxation under section 501 of the
4.30Internal Revenue Code of 1986, that entity must file with the commissioner and authorizer
4.31by February 15 a copy of the annual return required under section 6033 of the Internal
4.32Revenue Code of 1986.
4.33(c) If the commissioner and authorizer receive an audit report indicating that a
4.34material weakness exists in the financial reporting systems of a collaborative charter
4.35school, the collaborative charter school must submit a written report to the commissioner
4.36explaining how the material weakness will be resolved.
5.1 Subd. 11. Length of contract. The contract between a sponsoring school board and
5.2a collaborative charter school may not exceed five years. The contract may be renewed at
5.3any time.
5.4 Subd. 12. Contract requirements. The contract between the sponsoring school
5.5board and the collaborative charter school must be in writing and must contain at least:
5.6(1) a declaration of the school's purpose;
5.7(2) a description of the program and its expected student outcomes;
5.8(3) a statement of the school's admissions policies and procedures;
5.9(4) a description of the governance, management, and administration of the school;
5.10(5) signatures from the collaborative charter school board members agreeing to
5.11comply with all federal and state laws governing organizational, programmatic, and
5.12financial requirements applicable to charter schools;
5.13(6) requirements for oversight of operational, financial, and academic performance;
5.14(7) a description of the performance evaluation used to measure the academic
5.15progress at the school;
5.16(8) a description of the services that the collaborative charter school intends to
5.17purchase from the sponsoring school district;
5.18(9) a description of how the collaborative charter school will provide special
5.19instruction to students with a disability;
5.20(10) a plan to measure the fiscal performance of the school;
5.21(11) a plan for the orderly closing of the collaborative charter school if the closure is
5.22a termination for cause, voluntary termination, or for nonrenewal of contract; and
5.23(12) a description of the status of teachers at the school.
5.24 Subd. 13. Public status. A collaborative charter school is a public school and is part
5.25of the state's system of public education.
5.26 Subd. 14. State and local requirements. A collaborative charter school must meet
5.27all of the requirements in section 124D.10, subdivision 8.
5.28 Subd. 15. Aid reduction. The commissioner may reduce a collaborative charter
5.29school's state aid under section 127A.42 or 127A.43 if the collaborative charter school
5.30board fails to correct a violation under this section.
5.31 Subd. 16. Aid reduction for violations. The commissioner may reduce a
5.32collaborative charter school's state aid by an amount not to exceed 60 percent of the
5.33collaborative charter school's basic revenue for the period of time that a violation of
5.34law occurs.
5.35 Subd. 17. Admission requirements. A collaborative charter school may limit
5.36admission to:
6.1(1) pupils within an age group or grade level;
6.2(2) pupils who are eligible to participate in the graduation incentives program
6.3under section 124D.68;
6.4(3) residents of a specific geographic area; or
6.5(4) students who previously attended a school restructured under the No Child
6.6Left Behind Act.
6.7A collaborative charter school shall enroll an eligible pupil who submits a timely
6.8application, unless the number of applications exceeds the capacity of a program, class,
6.9grade level, or building. In this case, pupils must be accepted by lot. The collaborative
6.10charter school must develop and publish a lottery policy and process that it must use when
6.11accepting pupils by lot. A collaborative charter school shall give preference for enrollment
6.12to a sibling of an enrolled pupil and to a foster child of that pupil's parents and may give
6.13preference for enrolling children of the school's teachers before accepting other pupils
6.14by lot. A collaborative charter school may not limit admission to pupils on the basis
6.15of intellectual ability, measures of achievement or aptitude, or athletic ability and may
6.16not establish any criteria or requirements for admission that are inconsistent with this
6.17subdivision. The collaborative charter school shall not distribute any services or goods of
6.18value to students, parents, or guardians as an inducement, term, or condition of enrolling a
6.19student in a collaborative charter school.
6.20 Subd. 18. Pupil performance. A collaborative charter school must design its
6.21programs to at least meet the outcomes adopted by the commissioner for public school
6.22students. In the absence of the commissioner's requirements, the school must meet the
6.23outcomes contained in the contract with the authorizer. The achievement levels of the
6.24outcomes contained in the contract may exceed the achievement levels of any outcomes
6.25adopted by the commissioner for public school students.
6.26 Subd. 19. Employment and other operating matters. (a) A collaborative charter
6.27school must employ or contract with necessary teachers, as defined by section 122A.15,
6.28subdivision 1, who hold valid licenses to perform the particular service for which they
6.29are employed in the school. The collaborative charter school's state aid may be reduced
6.30under section 127A.43 if the school employs a teacher who is not appropriately licensed
6.31or approved by the board of teaching. The school may employ necessary employees
6.32who are not required to hold teaching licenses to perform duties other than teaching and
6.33may contract for other services. The school may discharge teachers and nonlicensed
6.34employees. The collaborative charter school board is subject to section 181.932. When
6.35offering employment to a prospective employee, a collaborative charter school must
7.1give that employee a written description of the terms and conditions of employment and
7.2the school's personnel policies.
7.3(b) A person without a valid administrator's license may perform administrative,
7.4supervisory, or instructional leadership duties. The board of directors shall establish
7.5qualifications for persons that hold administrative, supervisory, or instructional leadership
7.6roles. The qualifications shall include at least the following areas: instruction and
7.7assessment; human resource and personnel management; financial management; legal and
7.8compliance management; effective communication; and board, authorizer, and community
7.9relationships. The board of directors shall use those qualifications as the basis for job
7.10descriptions, hiring, and performance evaluations of those who hold administrative,
7.11supervisory, or instructional leadership roles. The board of directors and an individual
7.12who does not hold a valid administrative license and who serves in an administrative,
7.13supervisory, or instructional leadership position shall develop a professional development
7.14plan. Documentation of the implementation of the professional development plan of these
7.15persons shall be included in the school's annual report.
7.16(c) The board of directors also shall decide matters related to the operation of the
7.17school, including budgeting, curriculum, and operating procedures.
7.18 Subd. 20. Employees. A collaborative charter school must employ or contract with
7.19necessary teachers, as defined by section122A.15, subdivision 1 , who hold valid licenses
7.20to perform the particular service for which they are employed. If the collaborative charter
7.21school is formed through a memorandum of understanding, the teachers' employment and
7.22contracts must be in accordance with the memorandum of understanding required under
7.23subdivision 2. The collaborative charter school's state aid may be reduced under section
7.24127A.42 if the school employs a teacher who is not appropriately licensed or approved
7.25by the Board of Teaching. The school may employ necessary employees who are not
7.26required to hold teaching licenses to perform duties other than teaching and may contract
7.27for other services. The school may discharge teachers and nonlicensed employees. A
7.28person without a valid administrator's license may perform administrative, supervisory, or
7.29instructional leadership duties at the collaborative charter school.
7.30 Subd. 21. Operations. The board of directors of the collaborative charter
7.31school shall decide matters related to the operation of the school, including budgeting,
7.32curriculum, and operating procedures, subject to the sponsoring agreement and any
7.33adopted memoranda of understanding.
7.34 Subd. 22. Pupils with a disability. A collaborative charter school must comply with
7.35sections 125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education
7.36of pupils with a disability as if it were a school district.
8.1 Subd. 23. Length of school year. A collaborative charter school must provide
8.2instruction for at least the same amount of time as its sponsoring school district and may
8.3provide instruction throughout the school year according to sections 124D.12 to 124D.127
8.4or 124D.128.
8.5 Subd. 24. Annual public reports. A collaborative charter school must publish
8.6an annual report approved by the board of directors. The annual report must at least
8.7include information on school enrollment, student attrition, governance and management,
8.8staffing, finances, academic performance, operational performance, innovative practices
8.9and implementation, and future plans. A collaborative charter school must distribute the
8.10annual report by publication, mail, or electronic means to the commissioner, authorizer,
8.11school employees, and parents and legal guardians of students enrolled in the collaborative
8.12charter school, and must also post the report on the collaborative charter school's official
8.13Web site. The reports are public data under chapter 13.
8.14 Subd. 25. Review and comment. (a) The authorizer shall provide a formal written
8.15evaluation of the school's performance before the authorizer renews the charter contract.
8.16The department must review and comment on the authorizer's evaluation process at the
8.17time the authorizer submits its application for approval.
8.18(b) An authorizer shall monitor and evaluate the fiscal, operational, and student
8.19performance of the school, and may for this purpose annually assess a collaborative
8.20charter school a fee according to paragraph (c). The agreed-upon fee structure must be
8.21stated in the collaborative charter school contract.
8.22(c) The fee that each collaborative charter school pays to an authorizer each year is
8.23the greater of:
8.24(1) the basic formula allowance for that year; or
8.25(2) the lesser of:
8.26(i) the maximum fee factor times the basic formula allowance for that year; or
8.27(ii) the fee factor times the basic formula allowance for that year times the
8.28collaborative charter school's adjusted marginal cost pupil units for that year. The fee
8.29factor equals .005 in fiscal year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and
8.30.015 in fiscal years 2013 and later. The maximum fee factor equals 1.5 in fiscal year 2010,
8.312.0 in fiscal year 2011, 3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
8.32(d) For the preoperational planning period, the authorizer may assess a collaborative
8.33charter school a fee equal to the basic formula allowance.
8.34(e) By September 30 of each year, an authorizer shall submit to the commissioner
8.35a statement of expenditures related to chartering activities during the previous school
9.1year ending June 30. A copy of the statement shall be given to all schools chartered by
9.2the authorizer.
9.3 Subd. 26. Transportation. (a) A collaborative charter school after its first fiscal
9.4year of operation by March 1 of each fiscal year, and a collaborative charter school by
9.5July 1 of its first fiscal year of operation, must notify the district in which the school is
9.6located and the Department of Education if it will provide its own transportation or use the
9.7transportation services of the district in which it is located for the fiscal year.
9.8(b) If a collaborative charter school elects to provide transportation for pupils, the
9.9transportation must be provided by the collaborative charter school within a geographic
9.10zone designated by the school. The state must pay transportation aid to the collaborative
9.11charter school according to section 124D.11, subdivision 2. For pupils who reside outside
9.12the district in which the collaborative charter school is located, the collaborative charter
9.13school is not required to provide or pay for transportation between the pupil's residence
9.14and the border of the district in which the collaborative charter school is located. A
9.15parent may be reimbursed by the collaborative charter school for costs of transportation
9.16from the pupil's residence to the border of the district in which the collaborative charter
9.17school is located if the pupil is from a family whose income is at or below the poverty
9.18level as determined by the federal government. The reimbursement may not exceed the
9.19pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less.
9.20Reimbursement may not be paid for more than 250 miles per week. At the time a pupil
9.21enrolls in a collaborative charter school, the collaborative charter school must provide the
9.22parent or guardian with information regarding the transportation.
9.23(c) If a collaborative charter school does not elect to provide transportation,
9.24transportation for pupils enrolled at the school must be provided by the district in which
9.25the school is located, according to sections 123B.88, subdivision 6, and 124D.03,
9.26subdivision 8, for a pupil residing in the same district in which the collaborative charter
9.27school is located. Transportation may be provided by the district in which the school
9.28is located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8,
9.29for a pupil residing in a different district. If the district provides the transportation, the
9.30scheduling of routes, manner and method of transportation, control and discipline of the
9.31pupils, and any other matter relating to the transportation of pupils under this paragraph
9.32shall be within the sole discretion, control, and management of the district.
9.33 Subd. 27. Leased space. A collaborative charter school may lease space from an
9.34independent or special school board eligible to be an authorizer, other public organization,
9.35private, nonprofit nonsectarian organization, private property owner, or a sectarian
10.1organization if the leased space is constructed as a school facility. The department must
10.2review and approve or disapprove leases in a timely manner.
10.3 Subd. 28. Disseminate information. (a) The authorizer, the operators, and the
10.4department must disseminate information to the public on how to form and operate a
10.5collaborative charter school. Collaborative charter schools must disseminate information
10.6about how to use the offerings of a collaborative charter school. Targeted groups include
10.7low-income families and communities, students of color, and students who are at risk
10.8of academic failure.
10.9(b) Authorizers, operators, and the department also may disseminate information
10.10about the successful best practices in teaching and learning demonstrated by collaborative
10.11charter schools.
10.12 Subd. 29. Leave to teach in a collaborative charter school. If a teacher employed
10.13by a district makes a written request for an extended leave of absence to teach at a
10.14collaborative charter school, the district must grant the leave. The district must grant a
10.15leave not to exceed a total of five years. Any request to extend the leave shall be granted
10.16only at the discretion of the school board. The district may require that the request for a
10.17leave or extension of leave be made before February 1 in the school year preceding the
10.18school year in which the teacher intends to leave, or February 1 of the calendar year in
10.19which the teacher's leave is scheduled to terminate. Except as otherwise provided in
10.20this subdivision and except for section 122A.46, subdivision 7, the leave is governed by
10.21section 122A.46, including, but not limited to, reinstatement, notice of intention to return,
10.22seniority, salary, and insurance.
10.23During a leave, the teacher may continue to aggregate benefits and credits in the
10.24Teachers' Retirement Association account under chapters 354 and 354A, consistent with
10.25subdivision 22.
10.26 Subd. 30. Collective bargaining. Employees of the board of directors of a
10.27collaborative charter school may, if otherwise eligible, organize under chapter 179A
10.28and comply with its provisions. The board of directors of a collaborative charter school
10.29is a public employer, for the purposes of chapter 179A, upon formation of one or more
10.30bargaining units at the school. Bargaining units at the school must be separate from any
10.31other units within an authorizing district, except that bargaining units may remain part
10.32of the appropriate unit within an authorizing district, if the employees of the school, the
10.33board of directors of the school, the exclusive representative of the appropriate unit in
10.34the authorizing district, and the board of the authorizing district agree to include the
10.35employees in the appropriate unit of the authorizing district.
11.1 Subd. 31. Teacher and other employee retirement. (a) Teachers in a collaborative
11.2charter school must be public school teachers for the purposes of chapters 354 and 354A.
11.3(b) Except for teachers under paragraph (a), employees in a collaborative charter
11.4school must be public employees for the purposes of chapter 353.
11.5 Subd. 32. Causes for nonrenewal or termination of collaborative charter
11.6school contract. (a) The duration of the contract with an authorizer must be for the term
11.7contained in the contract according to subdivision 5. The authorizer may or may not renew
11.8a contract at the end of the term for any ground listed in paragraph (b). An authorizer may
11.9unilaterally terminate a contract during the term of the contract for any ground listed
11.10in paragraph (b). At least 60 days before not renewing or terminating a contract, the
11.11authorizer shall notify the board of directors of the collaborative charter school of the
11.12proposed action in writing. The notice shall state the grounds for the proposed action in
11.13reasonable detail and that the collaborative charter school's board of directors may request
11.14in writing an informal hearing before the authorizer within 15 business days of receiving
11.15notice of nonrenewal or termination of the contract. Failure by the board of directors to
11.16make a written request for a hearing within the 15-business-day period shall be treated
11.17as acquiescence to the proposed action. Upon receiving a timely written request for a
11.18hearing, the authorizer shall give ten business days' notice to the collaborative charter
11.19school's board of directors of the hearing date. The authorizer shall conduct an informal
11.20hearing before taking final action. The authorizer shall take final action to renew or not
11.21renew a contract no later than 20 business days before the proposed date for terminating
11.22the contract or the end date of the contract.
11.23(b) A contract may be terminated or not renewed upon any of the following grounds:
11.24(1) failure to meet the requirements for pupil performance contained in the contract;
11.25(2) failure to meet generally accepted standards of fiscal management;
11.26(3) violations of law; or
11.27(4) other good cause shown.
11.28If a contract is terminated or not renewed under this paragraph, the school must be
11.29dissolved according to the applicable provisions of chapter 308A or 317A.
11.30(c) If the authorizer and the collaborative charter school board of directors mutually
11.31agree to terminate or not renew the contract, a change in authorizers is allowed if the
11.32commissioner approves the transfer to a different eligible authorizer to authorize the
11.33collaborative charter school. Both parties must jointly submit their intent in writing to
11.34the commissioner to mutually terminate the contract. The authorizer that is a party
11.35to the existing contract at least must inform the approved different eligible authorizer
11.36about the fiscal and operational status and student performance of the school. Before the
12.1commissioner determines whether to approve a transfer of authorizer, the commissioner
12.2first must determine whether the collaborative charter school and prospective new
12.3authorizer can identify and effectively resolve those circumstances causing the previous
12.4authorizer and the collaborative charter school to mutually agree to terminate the contract.
12.5If no transfer of authorizer is approved, the school must be dissolved according to
12.6applicable law and the terms of the contract.
12.7(d) The commissioner, after providing reasonable notice to the board of directors of a
12.8collaborative charter school and the existing authorizer, and after providing an opportunity
12.9for a public hearing, may terminate the existing contract between the authorizer and the
12.10collaborative charter school board if the collaborative charter school has a history of:
12.11(1) failure to meet pupil performance requirements contained in the contract;
12.12(2) financial mismanagement or failure to meet generally accepted standards of
12.13fiscal management; or
12.14(3) repeated or major violations of the law.
12.15 Subd. 33. Related party lease costs. (a) A collaborative charter school is prohibited
12.16from entering a lease of real property with a related party unless the lessor is a nonprofit
12.17corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
12.18reasonable under section 124D.11, subdivision 4, clause (1).
12.19(b) For purposes of this section and section 124D.11:
12.20(1) "related party" means an affiliate or immediate relative of the other party in
12.21question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
12.22(2) "affiliate" means a person that directly or indirectly, through one or more
12.23intermediaries, controls, is controlled by, or is under common control with another person;
12.24(3) "immediate family" means an individual whose relationship by blood, marriage,
12.25adoption, or partnering is no more remote than first cousin;
12.26(4) "person" means an individual or entity of any kind; and
12.27(5) "control" means the ability to affect the management, operations, or policy
12.28actions or decisions of a person, whether through ownership of voting securities, by
12.29contract, or otherwise.
12.30(c) A lease of real property to be used for a collaborative charter school, not
12.31excluded in paragraph (a), must contain the following statement: "This lease is subject to
12.32Minnesota Statutes, section 124D.105, subdivision 33."
12.33(d) If a collaborative charter school enters into, as lessee, a lease with a related party
12.34and the collaborative charter school subsequently closes, the commissioner has the right to
12.35recover from the lessor any lease payments in excess of those that are reasonable under
12.36section 124D.11, subdivision 4, clause (1).
13.1 Subd. 34. Pupil enrollment upon nonrenewal or termination of collaborative
13.2charter school contract. If a contract is not renewed or is terminated according to
13.3subdivision 32, a pupil who attended the school, siblings of the pupil, or another pupil
13.4who resides in the same place as the pupil may enroll in the resident district or may
13.5submit an application to a nonresident district according to section 124D.03 at any time.
13.6Applications and notices required by section 124D.03 must be processed and provided in
13.7a prompt manner. The application and notice deadlines in section 124D.03 do not apply
13.8under these circumstances. The closed collaborative charter school must transfer the
13.9student's educational records within ten business days of closure to the student's school
13.10district of residence where the records must be retained or transferred under section
13.11120A.22, subdivision 7.
13.12 Subd. 35. Additional resources. The board of directors of a school district that
13.13authorizes a collaborative charter school under this section may provide additional
13.14resources to that charter school in the same manner as any other charter school authorized.
13.15 Subd. 36. Extent of specific legal authority. (a) The board of directors of a
13.16collaborative charter school may sue and be sued.
13.17(b) The board may not levy taxes or issue bonds.
13.18(c) The commissioner, an authorizer, members of the board of an authorizer in their
13.19official capacities, and employees of an authorizer are immune from civil or criminal
13.20liability with respect to all activities related to a collaborative charter school they approve
13.21or authorize. The board of directors shall obtain at least the amount of and types of
13.22insurance up to the applicable tort liability limits under chapter 466. The collaborative
13.23charter school board must submit a copy of the insurance policy to its authorizer and the
13.24commissioner before starting operations. The collaborative charter school board must
13.25submit changes in its insurance carrier or policy to its authorizer and the commissioner
13.26within 20 business days of the change.
13.27 Subd. 37. Employee retirement. Teachers employed by a collaborative charter
13.28school are public school teachers for purposes of chapters 354 and 354A. Any other
13.29employees of a collaborative charter school are public employees for purposes of chapter
13.30353.
13.31 Subd. 38. Purchase of goods and services. The board of directors of the
13.32collaborative charter school may contract for any goods and services, subject to the
13.33contract or memorandum of understanding establishing the school.
1.3collaborative charter school designed to enhance student achievement;proposing
1.4coding for new law in Minnesota Statutes, chapter 124D.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [124D.105] COLLABORATIVE CHARTER SCHOOL.
1.7 Subdivision 1. Creation. The board of directors of an independent or special school
1.8district may create and sponsor a collaborative charter school according to the provisions
1.9of this section. The board is subject to the requirements for charter school authorizers
1.10under section 124D.10.
1.11 Subd. 2. Formation of school. (a) A school board intending to form a collaborative
1.12charter school must adopt a written resolution authorizing the formation of the school.
1.13The school may be formed either by: (1) adopting a memorandum of understanding from
1.14the exclusive bargaining representative of the district's teachers regarding the employment
1.15status of teachers at the collaborative charter school; or (2) contracting with a party
1.16otherwise eligible to be a sponsor or a charter school under section 124D.10. A district
1.17may form a voluntary collaborative partnership with a charter school that is currently
1.18authorized by another authorizer.
1.19(b) The school must be organized and operated as a cooperative under chapter 308A
1.20or nonprofit corporation under chapter 317A and the provisions under the applicable
1.21chapter shall apply to the school except as provided in this section. Notwithstanding
1.22sections 465.717 and 465.719, a school district subject to this section may create a
1.23corporation for the purpose of establishing a collaborative charter school.
2.1 Subd. 3. Conflict of interest. (a) An individual is prohibited from serving as
2.2a member of the collaborative charter school board of directors if the individual, an
2.3immediate family member, or the individual's partner is an owner, employee, or agent of
2.4or a contractor with a for-profit or nonprofit entity with whom the collaborative charter
2.5school contracts, directly or indirectly, for professional services, goods, or facilities. A
2.6violation of this prohibition renders a contract voidable at the option of the commissioner
2.7or the collaborative charter school board of directors. A member of a collaborative
2.8charter school board of directors who violates this prohibition is individually liable to the
2.9collaborative charter school for any damage caused by the violation.
2.10(b) No member of the board of directors, employee, officer, or agent of a
2.11collaborative charter school shall participate in selecting, awarding, or administering a
2.12contract if a conflict of interest exists. A conflict exists when:
2.13(1) the board member, employee, officer, or agent;
2.14(2) the immediate family of the board member, employee, officer, or agent;
2.15(3) a partner of the board member, employee, officer, or agent; or
2.16(4) an organization that employs, or is about to employ, any individual in clauses (1)
2.17to (3), has a financial or other interest in the entity with which the collaborative charter
2.18school is contracting. A violation of this prohibition renders the contract void.
2.19(c) Any employee, agent, or board member of the authorizer who participates in
2.20the initial review, approval, ongoing oversight, evaluation, or the collaborative charter
2.21renewal or nonrenewal process or decision is ineligible to serve on the board of directors
2.22of a school chartered by that authorizer.
2.23(d) The conflict of interest provisions under this subdivision do not apply to
2.24compensation paid to a teacher employed by the collaborative charter school who also
2.25serves as a member of the board of directors.
2.26(e) The conflict of interest provisions under this subdivision do not apply to a
2.27teacher who provides services to a collaborative charter school through a cooperative
2.28formed under chapter 308A when the teacher also serves on the collaborative charter
2.29school board of directors.
2.30 Subd. 4. Conversion of existing schools. (a) A board of an independent or special
2.31school district may convert one or more of its existing schools to collaborative charter
2.32schools under this section if 60 percent of the full-time teachers at the school sign a petition
2.33seeking conversion. The conversion must occur at the beginning of an academic year.
2.34(b) The board of directors of a school district that is an approved charter school
2.35authorizer must not require a charter school that it has authorized to become a collaborative
3.1charter school under this section or otherwise condition the charter school's reauthorization
3.2on the provisions of this section.
3.3 Subd. 5. Charter contract. The authorization for a collaborative charter school
3.4must be in the form of a written contract signed by the authorizer and the board of
3.5directors of the collaborative charter school. The contract must be completed within 45
3.6business days of the adoption of the school board resolution. The authorizer shall submit
3.7to the commissioner a copy of the signed collaborative charter contract within ten business
3.8days of its execution. The contract for a collaborative charter school must be in writing
3.9and contain at least the following:
3.10(1) a declaration of the purposes that the school intends to carry out and how the
3.11school will report its implementation of those purposes;
3.12(2) a description of the school program and the specific academic and nonacademic
3.13outcomes that pupils must achieve;
3.14(3) a statement of admission policies and procedures;
3.15(4) a governance, management, and administration plan for the school;
3.16(5) signed agreements from collaborative charter school board members to comply
3.17with all federal and state laws governing organizational, programmatic, and financial
3.18requirements applicable to collaborative charter schools;
3.19(6) the criteria, processes, and procedures that the authorizer will use for ongoing
3.20oversight of operational, financial, and academic performance;
3.21(7) the performance evaluation that is a prerequisite for reviewing a charter contract
3.22under subdivision 25;
3.23(8) types and amounts of insurance liability coverage to be obtained by the
3.24collaborative charter school;
3.25(9) the term of the contract, which may be up to three years for an initial contract
3.26plus an additional preoperational planning year, and up to five years for a renewed contract
3.27if warranted by the school's academic, financial, and operational performance;
3.28(10) how the board of directors or the operators of the collaborative charter school
3.29will provide special instruction and services for children with a disability under sections
3.30125A.03 to 125A.24 and 125A.65, and a description of the financial parameters within
3.31which the collaborative charter school will operate to provide the special instruction
3.32and services to children with a disability;
3.33(11) the process and criteria the authorizer intends to use to monitor and evaluate
3.34the fiscal and student performance of the collaborative charter school, consistent with
3.35subdivision 25; and
4.1(12) the plan for an orderly closing of the school under chapter 308A or 317A,
4.2if the closure is a termination for cause, a voluntary termination, or a nonrenewal of
4.3the contract, and that includes establishing the responsibilities of the school board of
4.4directors and the authorizer and notifying the commissioner, authorizer, school district in
4.5which the collaborative charter school is located, and parents of enrolled students about
4.6the closure, the transfer of student records to students' resident districts, and procedures
4.7for closing financial operations.
4.8 Subd. 6. Location. A collaborative charter school must be located within the
4.9geographic boundaries of the sponsoring school district of a collaborative school formed
4.10through a memorandum of understanding.
4.11 Subd. 7. Governance. A collaborative charter school formed through a
4.12memorandum of understanding must be governed by a board of directors composed of
4.13at least five members. The collaborative charter school board meetings must comply
4.14with chapter 13D.
4.15 Subd. 8. Governance of collaborative charter school formed under contract.
4.16A collaborative charter school formed under contract with a collaborative charter school
4.17authorizer must be governed according to the provisions specified in the contract, and the
4.18meetings of the collaborative charter school board must comply with chapter 13D.
4.19 Subd. 9. Finances. A collaborative charter school's pupils must be included in
4.20the school district's count of pupils under chapter 126C. The pupils generate funding in
4.21the same manner as all other pupils in the school district. In addition, a collaborative
4.22charter school qualifies for charter school lease aid and startup aid under section 124D.11,
4.23subdivisions 4 and 8.
4.24 Subd. 10. Audit report. (a) The collaborative charter school must submit an audit
4.25report to the commissioner and its authorizer by December 31 each year.
4.26(b) The collaborative charter school, with the assistance of the auditor conducting the
4.27audit, must include with the report a copy of all collaborative charter school agreements
4.28for corporate management services. If the entity that provides the professional services
4.29to the collaborative charter school is exempt from taxation under section 501 of the
4.30Internal Revenue Code of 1986, that entity must file with the commissioner and authorizer
4.31by February 15 a copy of the annual return required under section 6033 of the Internal
4.32Revenue Code of 1986.
4.33(c) If the commissioner and authorizer receive an audit report indicating that a
4.34material weakness exists in the financial reporting systems of a collaborative charter
4.35school, the collaborative charter school must submit a written report to the commissioner
4.36explaining how the material weakness will be resolved.
5.1 Subd. 11. Length of contract. The contract between a sponsoring school board and
5.2a collaborative charter school may not exceed five years. The contract may be renewed at
5.3any time.
5.4 Subd. 12. Contract requirements. The contract between the sponsoring school
5.5board and the collaborative charter school must be in writing and must contain at least:
5.6(1) a declaration of the school's purpose;
5.7(2) a description of the program and its expected student outcomes;
5.8(3) a statement of the school's admissions policies and procedures;
5.9(4) a description of the governance, management, and administration of the school;
5.10(5) signatures from the collaborative charter school board members agreeing to
5.11comply with all federal and state laws governing organizational, programmatic, and
5.12financial requirements applicable to charter schools;
5.13(6) requirements for oversight of operational, financial, and academic performance;
5.14(7) a description of the performance evaluation used to measure the academic
5.15progress at the school;
5.16(8) a description of the services that the collaborative charter school intends to
5.17purchase from the sponsoring school district;
5.18(9) a description of how the collaborative charter school will provide special
5.19instruction to students with a disability;
5.20(10) a plan to measure the fiscal performance of the school;
5.21(11) a plan for the orderly closing of the collaborative charter school if the closure is
5.22a termination for cause, voluntary termination, or for nonrenewal of contract; and
5.23(12) a description of the status of teachers at the school.
5.24 Subd. 13. Public status. A collaborative charter school is a public school and is part
5.25of the state's system of public education.
5.26 Subd. 14. State and local requirements. A collaborative charter school must meet
5.27all of the requirements in section 124D.10, subdivision 8.
5.28 Subd. 15. Aid reduction. The commissioner may reduce a collaborative charter
5.29school's state aid under section 127A.42 or 127A.43 if the collaborative charter school
5.30board fails to correct a violation under this section.
5.31 Subd. 16. Aid reduction for violations. The commissioner may reduce a
5.32collaborative charter school's state aid by an amount not to exceed 60 percent of the
5.33collaborative charter school's basic revenue for the period of time that a violation of
5.34law occurs.
5.35 Subd. 17. Admission requirements. A collaborative charter school may limit
5.36admission to:
6.1(1) pupils within an age group or grade level;
6.2(2) pupils who are eligible to participate in the graduation incentives program
6.3under section 124D.68;
6.4(3) residents of a specific geographic area; or
6.5(4) students who previously attended a school restructured under the No Child
6.6Left Behind Act.
6.7A collaborative charter school shall enroll an eligible pupil who submits a timely
6.8application, unless the number of applications exceeds the capacity of a program, class,
6.9grade level, or building. In this case, pupils must be accepted by lot. The collaborative
6.10charter school must develop and publish a lottery policy and process that it must use when
6.11accepting pupils by lot. A collaborative charter school shall give preference for enrollment
6.12to a sibling of an enrolled pupil and to a foster child of that pupil's parents and may give
6.13preference for enrolling children of the school's teachers before accepting other pupils
6.14by lot. A collaborative charter school may not limit admission to pupils on the basis
6.15of intellectual ability, measures of achievement or aptitude, or athletic ability and may
6.16not establish any criteria or requirements for admission that are inconsistent with this
6.17subdivision. The collaborative charter school shall not distribute any services or goods of
6.18value to students, parents, or guardians as an inducement, term, or condition of enrolling a
6.19student in a collaborative charter school.
6.20 Subd. 18. Pupil performance. A collaborative charter school must design its
6.21programs to at least meet the outcomes adopted by the commissioner for public school
6.22students. In the absence of the commissioner's requirements, the school must meet the
6.23outcomes contained in the contract with the authorizer. The achievement levels of the
6.24outcomes contained in the contract may exceed the achievement levels of any outcomes
6.25adopted by the commissioner for public school students.
6.26 Subd. 19. Employment and other operating matters. (a) A collaborative charter
6.27school must employ or contract with necessary teachers, as defined by section 122A.15,
6.28subdivision 1, who hold valid licenses to perform the particular service for which they
6.29are employed in the school. The collaborative charter school's state aid may be reduced
6.30under section 127A.43 if the school employs a teacher who is not appropriately licensed
6.31or approved by the board of teaching. The school may employ necessary employees
6.32who are not required to hold teaching licenses to perform duties other than teaching and
6.33may contract for other services. The school may discharge teachers and nonlicensed
6.34employees. The collaborative charter school board is subject to section 181.932. When
6.35offering employment to a prospective employee, a collaborative charter school must
7.1give that employee a written description of the terms and conditions of employment and
7.2the school's personnel policies.
7.3(b) A person without a valid administrator's license may perform administrative,
7.4supervisory, or instructional leadership duties. The board of directors shall establish
7.5qualifications for persons that hold administrative, supervisory, or instructional leadership
7.6roles. The qualifications shall include at least the following areas: instruction and
7.7assessment; human resource and personnel management; financial management; legal and
7.8compliance management; effective communication; and board, authorizer, and community
7.9relationships. The board of directors shall use those qualifications as the basis for job
7.10descriptions, hiring, and performance evaluations of those who hold administrative,
7.11supervisory, or instructional leadership roles. The board of directors and an individual
7.12who does not hold a valid administrative license and who serves in an administrative,
7.13supervisory, or instructional leadership position shall develop a professional development
7.14plan. Documentation of the implementation of the professional development plan of these
7.15persons shall be included in the school's annual report.
7.16(c) The board of directors also shall decide matters related to the operation of the
7.17school, including budgeting, curriculum, and operating procedures.
7.18 Subd. 20. Employees. A collaborative charter school must employ or contract with
7.19necessary teachers, as defined by section
7.20to perform the particular service for which they are employed. If the collaborative charter
7.21school is formed through a memorandum of understanding, the teachers' employment and
7.22contracts must be in accordance with the memorandum of understanding required under
7.23subdivision 2. The collaborative charter school's state aid may be reduced under section
7.24
7.25by the Board of Teaching. The school may employ necessary employees who are not
7.26required to hold teaching licenses to perform duties other than teaching and may contract
7.27for other services. The school may discharge teachers and nonlicensed employees. A
7.28person without a valid administrator's license may perform administrative, supervisory, or
7.29instructional leadership duties at the collaborative charter school.
7.30 Subd. 21. Operations. The board of directors of the collaborative charter
7.31school shall decide matters related to the operation of the school, including budgeting,
7.32curriculum, and operating procedures, subject to the sponsoring agreement and any
7.33adopted memoranda of understanding.
7.34 Subd. 22. Pupils with a disability. A collaborative charter school must comply with
7.35sections 125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education
7.36of pupils with a disability as if it were a school district.
8.1 Subd. 23. Length of school year. A collaborative charter school must provide
8.2instruction for at least the same amount of time as its sponsoring school district and may
8.3provide instruction throughout the school year according to sections 124D.12 to 124D.127
8.4or 124D.128.
8.5 Subd. 24. Annual public reports. A collaborative charter school must publish
8.6an annual report approved by the board of directors. The annual report must at least
8.7include information on school enrollment, student attrition, governance and management,
8.8staffing, finances, academic performance, operational performance, innovative practices
8.9and implementation, and future plans. A collaborative charter school must distribute the
8.10annual report by publication, mail, or electronic means to the commissioner, authorizer,
8.11school employees, and parents and legal guardians of students enrolled in the collaborative
8.12charter school, and must also post the report on the collaborative charter school's official
8.13Web site. The reports are public data under chapter 13.
8.14 Subd. 25. Review and comment. (a) The authorizer shall provide a formal written
8.15evaluation of the school's performance before the authorizer renews the charter contract.
8.16The department must review and comment on the authorizer's evaluation process at the
8.17time the authorizer submits its application for approval.
8.18(b) An authorizer shall monitor and evaluate the fiscal, operational, and student
8.19performance of the school, and may for this purpose annually assess a collaborative
8.20charter school a fee according to paragraph (c). The agreed-upon fee structure must be
8.21stated in the collaborative charter school contract.
8.22(c) The fee that each collaborative charter school pays to an authorizer each year is
8.23the greater of:
8.24(1) the basic formula allowance for that year; or
8.25(2) the lesser of:
8.26(i) the maximum fee factor times the basic formula allowance for that year; or
8.27(ii) the fee factor times the basic formula allowance for that year times the
8.28collaborative charter school's adjusted marginal cost pupil units for that year. The fee
8.29factor equals .005 in fiscal year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and
8.30.015 in fiscal years 2013 and later. The maximum fee factor equals 1.5 in fiscal year 2010,
8.312.0 in fiscal year 2011, 3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
8.32(d) For the preoperational planning period, the authorizer may assess a collaborative
8.33charter school a fee equal to the basic formula allowance.
8.34(e) By September 30 of each year, an authorizer shall submit to the commissioner
8.35a statement of expenditures related to chartering activities during the previous school
9.1year ending June 30. A copy of the statement shall be given to all schools chartered by
9.2the authorizer.
9.3 Subd. 26. Transportation. (a) A collaborative charter school after its first fiscal
9.4year of operation by March 1 of each fiscal year, and a collaborative charter school by
9.5July 1 of its first fiscal year of operation, must notify the district in which the school is
9.6located and the Department of Education if it will provide its own transportation or use the
9.7transportation services of the district in which it is located for the fiscal year.
9.8(b) If a collaborative charter school elects to provide transportation for pupils, the
9.9transportation must be provided by the collaborative charter school within a geographic
9.10zone designated by the school. The state must pay transportation aid to the collaborative
9.11charter school according to section 124D.11, subdivision 2. For pupils who reside outside
9.12the district in which the collaborative charter school is located, the collaborative charter
9.13school is not required to provide or pay for transportation between the pupil's residence
9.14and the border of the district in which the collaborative charter school is located. A
9.15parent may be reimbursed by the collaborative charter school for costs of transportation
9.16from the pupil's residence to the border of the district in which the collaborative charter
9.17school is located if the pupil is from a family whose income is at or below the poverty
9.18level as determined by the federal government. The reimbursement may not exceed the
9.19pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less.
9.20Reimbursement may not be paid for more than 250 miles per week. At the time a pupil
9.21enrolls in a collaborative charter school, the collaborative charter school must provide the
9.22parent or guardian with information regarding the transportation.
9.23(c) If a collaborative charter school does not elect to provide transportation,
9.24transportation for pupils enrolled at the school must be provided by the district in which
9.25the school is located, according to sections 123B.88, subdivision 6, and 124D.03,
9.26subdivision 8, for a pupil residing in the same district in which the collaborative charter
9.27school is located. Transportation may be provided by the district in which the school
9.28is located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8,
9.29for a pupil residing in a different district. If the district provides the transportation, the
9.30scheduling of routes, manner and method of transportation, control and discipline of the
9.31pupils, and any other matter relating to the transportation of pupils under this paragraph
9.32shall be within the sole discretion, control, and management of the district.
9.33 Subd. 27. Leased space. A collaborative charter school may lease space from an
9.34independent or special school board eligible to be an authorizer, other public organization,
9.35private, nonprofit nonsectarian organization, private property owner, or a sectarian
10.1organization if the leased space is constructed as a school facility. The department must
10.2review and approve or disapprove leases in a timely manner.
10.3 Subd. 28. Disseminate information. (a) The authorizer, the operators, and the
10.4department must disseminate information to the public on how to form and operate a
10.5collaborative charter school. Collaborative charter schools must disseminate information
10.6about how to use the offerings of a collaborative charter school. Targeted groups include
10.7low-income families and communities, students of color, and students who are at risk
10.8of academic failure.
10.9(b) Authorizers, operators, and the department also may disseminate information
10.10about the successful best practices in teaching and learning demonstrated by collaborative
10.11charter schools.
10.12 Subd. 29. Leave to teach in a collaborative charter school. If a teacher employed
10.13by a district makes a written request for an extended leave of absence to teach at a
10.14collaborative charter school, the district must grant the leave. The district must grant a
10.15leave not to exceed a total of five years. Any request to extend the leave shall be granted
10.16only at the discretion of the school board. The district may require that the request for a
10.17leave or extension of leave be made before February 1 in the school year preceding the
10.18school year in which the teacher intends to leave, or February 1 of the calendar year in
10.19which the teacher's leave is scheduled to terminate. Except as otherwise provided in
10.20this subdivision and except for section 122A.46, subdivision 7, the leave is governed by
10.21section 122A.46, including, but not limited to, reinstatement, notice of intention to return,
10.22seniority, salary, and insurance.
10.23During a leave, the teacher may continue to aggregate benefits and credits in the
10.24Teachers' Retirement Association account under chapters 354 and 354A, consistent with
10.25subdivision 22.
10.26 Subd. 30. Collective bargaining. Employees of the board of directors of a
10.27collaborative charter school may, if otherwise eligible, organize under chapter 179A
10.28and comply with its provisions. The board of directors of a collaborative charter school
10.29is a public employer, for the purposes of chapter 179A, upon formation of one or more
10.30bargaining units at the school. Bargaining units at the school must be separate from any
10.31other units within an authorizing district, except that bargaining units may remain part
10.32of the appropriate unit within an authorizing district, if the employees of the school, the
10.33board of directors of the school, the exclusive representative of the appropriate unit in
10.34the authorizing district, and the board of the authorizing district agree to include the
10.35employees in the appropriate unit of the authorizing district.
11.1 Subd. 31. Teacher and other employee retirement. (a) Teachers in a collaborative
11.2charter school must be public school teachers for the purposes of chapters 354 and 354A.
11.3(b) Except for teachers under paragraph (a), employees in a collaborative charter
11.4school must be public employees for the purposes of chapter 353.
11.5 Subd. 32. Causes for nonrenewal or termination of collaborative charter
11.6school contract. (a) The duration of the contract with an authorizer must be for the term
11.7contained in the contract according to subdivision 5. The authorizer may or may not renew
11.8a contract at the end of the term for any ground listed in paragraph (b). An authorizer may
11.9unilaterally terminate a contract during the term of the contract for any ground listed
11.10in paragraph (b). At least 60 days before not renewing or terminating a contract, the
11.11authorizer shall notify the board of directors of the collaborative charter school of the
11.12proposed action in writing. The notice shall state the grounds for the proposed action in
11.13reasonable detail and that the collaborative charter school's board of directors may request
11.14in writing an informal hearing before the authorizer within 15 business days of receiving
11.15notice of nonrenewal or termination of the contract. Failure by the board of directors to
11.16make a written request for a hearing within the 15-business-day period shall be treated
11.17as acquiescence to the proposed action. Upon receiving a timely written request for a
11.18hearing, the authorizer shall give ten business days' notice to the collaborative charter
11.19school's board of directors of the hearing date. The authorizer shall conduct an informal
11.20hearing before taking final action. The authorizer shall take final action to renew or not
11.21renew a contract no later than 20 business days before the proposed date for terminating
11.22the contract or the end date of the contract.
11.23(b) A contract may be terminated or not renewed upon any of the following grounds:
11.24(1) failure to meet the requirements for pupil performance contained in the contract;
11.25(2) failure to meet generally accepted standards of fiscal management;
11.26(3) violations of law; or
11.27(4) other good cause shown.
11.28If a contract is terminated or not renewed under this paragraph, the school must be
11.29dissolved according to the applicable provisions of chapter 308A or 317A.
11.30(c) If the authorizer and the collaborative charter school board of directors mutually
11.31agree to terminate or not renew the contract, a change in authorizers is allowed if the
11.32commissioner approves the transfer to a different eligible authorizer to authorize the
11.33collaborative charter school. Both parties must jointly submit their intent in writing to
11.34the commissioner to mutually terminate the contract. The authorizer that is a party
11.35to the existing contract at least must inform the approved different eligible authorizer
11.36about the fiscal and operational status and student performance of the school. Before the
12.1commissioner determines whether to approve a transfer of authorizer, the commissioner
12.2first must determine whether the collaborative charter school and prospective new
12.3authorizer can identify and effectively resolve those circumstances causing the previous
12.4authorizer and the collaborative charter school to mutually agree to terminate the contract.
12.5If no transfer of authorizer is approved, the school must be dissolved according to
12.6applicable law and the terms of the contract.
12.7(d) The commissioner, after providing reasonable notice to the board of directors of a
12.8collaborative charter school and the existing authorizer, and after providing an opportunity
12.9for a public hearing, may terminate the existing contract between the authorizer and the
12.10collaborative charter school board if the collaborative charter school has a history of:
12.11(1) failure to meet pupil performance requirements contained in the contract;
12.12(2) financial mismanagement or failure to meet generally accepted standards of
12.13fiscal management; or
12.14(3) repeated or major violations of the law.
12.15 Subd. 33. Related party lease costs. (a) A collaborative charter school is prohibited
12.16from entering a lease of real property with a related party unless the lessor is a nonprofit
12.17corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
12.18reasonable under section 124D.11, subdivision 4, clause (1).
12.19(b) For purposes of this section and section 124D.11:
12.20(1) "related party" means an affiliate or immediate relative of the other party in
12.21question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
12.22(2) "affiliate" means a person that directly or indirectly, through one or more
12.23intermediaries, controls, is controlled by, or is under common control with another person;
12.24(3) "immediate family" means an individual whose relationship by blood, marriage,
12.25adoption, or partnering is no more remote than first cousin;
12.26(4) "person" means an individual or entity of any kind; and
12.27(5) "control" means the ability to affect the management, operations, or policy
12.28actions or decisions of a person, whether through ownership of voting securities, by
12.29contract, or otherwise.
12.30(c) A lease of real property to be used for a collaborative charter school, not
12.31excluded in paragraph (a), must contain the following statement: "This lease is subject to
12.32Minnesota Statutes, section 124D.105, subdivision 33."
12.33(d) If a collaborative charter school enters into, as lessee, a lease with a related party
12.34and the collaborative charter school subsequently closes, the commissioner has the right to
12.35recover from the lessor any lease payments in excess of those that are reasonable under
12.36section 124D.11, subdivision 4, clause (1).
13.1 Subd. 34. Pupil enrollment upon nonrenewal or termination of collaborative
13.2charter school contract. If a contract is not renewed or is terminated according to
13.3subdivision 32, a pupil who attended the school, siblings of the pupil, or another pupil
13.4who resides in the same place as the pupil may enroll in the resident district or may
13.5submit an application to a nonresident district according to section 124D.03 at any time.
13.6Applications and notices required by section 124D.03 must be processed and provided in
13.7a prompt manner. The application and notice deadlines in section 124D.03 do not apply
13.8under these circumstances. The closed collaborative charter school must transfer the
13.9student's educational records within ten business days of closure to the student's school
13.10district of residence where the records must be retained or transferred under section
13.11120A.22, subdivision 7.
13.12 Subd. 35. Additional resources. The board of directors of a school district that
13.13authorizes a collaborative charter school under this section may provide additional
13.14resources to that charter school in the same manner as any other charter school authorized.
13.15 Subd. 36. Extent of specific legal authority. (a) The board of directors of a
13.16collaborative charter school may sue and be sued.
13.17(b) The board may not levy taxes or issue bonds.
13.18(c) The commissioner, an authorizer, members of the board of an authorizer in their
13.19official capacities, and employees of an authorizer are immune from civil or criminal
13.20liability with respect to all activities related to a collaborative charter school they approve
13.21or authorize. The board of directors shall obtain at least the amount of and types of
13.22insurance up to the applicable tort liability limits under chapter 466. The collaborative
13.23charter school board must submit a copy of the insurance policy to its authorizer and the
13.24commissioner before starting operations. The collaborative charter school board must
13.25submit changes in its insurance carrier or policy to its authorizer and the commissioner
13.26within 20 business days of the change.
13.27 Subd. 37. Employee retirement. Teachers employed by a collaborative charter
13.28school are public school teachers for purposes of chapters 354 and 354A. Any other
13.29employees of a collaborative charter school are public employees for purposes of chapter
13.30353.
13.31 Subd. 38. Purchase of goods and services. The board of directors of the
13.32collaborative charter school may contract for any goods and services, subject to the
13.33contract or memorandum of understanding establishing the school.
