1.2relating to education finance; modifying charter school financing; amending
1.3Minnesota Statutes 2012, sections 124D.10, subdivision 25; 127A.45, by adding
1.4a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 25, is amended to
1.7read:
1.8    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
1.9school may sue and be sued.
1.10    (b) The board may not levy taxes or issue bonds.
1.11    (c) The commissioner, an authorizer, members of the board of an authorizer in
1.12their official capacity, and employees of an authorizer are immune from civil or criminal
1.13liability with respect to all activities related to a charter school they approve or authorize.
1.14The board of directors shall obtain at least the amount of and types of insurance up to the
1.15applicable tort liability limits under chapter 466. The charter school board must submit
1.16a copy of the insurance policy to its authorizer and the commissioner before starting
1.17operations. The charter school board must submit changes in its insurance carrier or policy
1.18to its authorizer and the commissioner within 20 business days of the change.
1.19(d) Notwithstanding section 3.736, the charter school shall assume full liability for
1.20its activities and indemnify and hold harmless the authorizer and its officers, agents, and
1.21employees from any suit, claim, or liability arising from any operation of the charter school
1.22and the commissioner and department officers, agents, and employees. A charter school
1.23is not required to indemnify or hold harmless a state employee if the state would not be
1.24required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
2.1(e) The board may borrow money in the following manner and subject to the
2.2following limitations in anticipation of receipt of state aids for schools as defined in
2.3Minnesota Statutes or federal school aid distributed by or through the Department of
2.4Education. The aggregate borrowing under this paragraph shall not exceed the greater
2.5of (1) 50 percent or (2) the difference between 100 percent and the current year aid
2.6payment under section 127A.45, subdivision 2, paragraph (d), of the aids, fees, and
2.7tuition payments receivable by the charter school in the fiscal year in which the money is
2.8borrowed as estimated and certified by the commissioner. If the charter school proposes
2.9to sell all or a portion of the estimated and certified aid, it must give public notice of the
2.10proposed sale on its official Web site for at least 15 business days before the proposed sale.
2.11At the time the board intends to sell all or a portion of the anticipated aid, the anticipated
2.12aid must be sold to the buyer who will agree to purchase the aid on the terms deemed
2.13most favorable to the charter school. The terms of any sale of anticipated aid are public
2.14data under chapter 13. The money received from the sale of the anticipated aid must be
2.15disbursed solely for the purpose that the aid is intended.
2.16EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

2.17    Sec. 2. Minnesota Statutes 2012, section 127A.45, is amended by adding a subdivision
2.18to read:
2.19    Subd. 6b. Charter current year aid payment. Notwithstanding subdivision 2,
2.20paragraph (d), or section 124D.11, subdivision 1, the current year aid payment percentage
2.21equals 90 for a charter school in its first five years of operation.
2.22EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.