1.1 	A bill for an act
1.2 	relating to education; further clarifying charter school provisions;amending 
1.3 	Minnesota Statutes 2010, section 124D.10.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 124D.10, is amended to read:
1.6 	124D.10 CHARTER SCHOOLS.
1.7 		Subdivision 1.Purposes. (a) The purpose of this section is to:
1.8 	(1) improve pupil learning and student achievement;
1.9 	(2) increase learning opportunities for pupils;
1.10 	(3) encourage the use of different and innovative teaching methods;
1.11 	(4) measure learning outcomes and create different and innovative forms of 
1.12 	measuring outcomes;
1.13 	(5) establish new forms of accountability for schools; and
1.14 	(6) create new professional opportunities for teachers, including the opportunity to 
1.15 	be responsible for the learning program at the school site.
1.16 	(b) This section does not provide a means to keep open a school that ~~otherwise would~~ 
1.17 	~~be closed or to reestablish a school that has been closed. Applicants in these circumstances~~ 
1.18 	~~bear the burden of proving that conversion to a charter school or establishment of a new~~ 
1.19 	~~charter school fulfills the purposes specified in this subdivision, independent of the~~ 
1.20 	~~school's closing~~ a school board decides to close. However, a school board may endorse 
1.21 	or authorize the establishing of a charter school to replace the school the board decided 
1.22 	to close. Applicants seeking a charter under this circumstance must demonstrate to the 
1.23 	authorizer that the charter sought is substantially different in purpose and program from 
1.24 	the school the board closed and that the proposed charter satisfies the requirements of this 
2.1 	subdivision. If the school board that closed the school authorizes the charter, it must 
2.2 	document in its affidavit to the commissioner that the charter is substantially different in 
2.3 	program and purpose from the school it closed.
2.4 	An authorizer shall not approve an application submitted by a charter school 
2.5 	developer under subdivision 4, paragraph (a), if the application does not comply with this 
2.6 	subdivision. The commissioner shall not approve an affidavit submitted by an authorizer 
2.7 	under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
2.8 		Subd. 2.Applicability. This section applies only to charter schools formed and 
2.9 	operated under this section.
2.10 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
2.11 	subdivision have the meanings given them.
2.12 	"Application" to receive approval as an authorizer means the proposal an eligible 
2.13 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
2.14 	to submit any affidavit to charter to a school.
2.15 	"Application" under subdivision 4 means the charter school business plan a 
2.16 	school developer submits to an authorizer for approval to establish a charter school that 
2.17 	documents the school developer's mission statement, school purposes, program design, 
2.18 	financial plan, governance and management structure, and background and experience, 
2.19 	plus any other information the authorizer requests. The application also shall include a 
2.20 	"statement of assurances" of legal compliance prescribed by the commissioner.
2.21 	"Affidavit" means a written statement the authorizer submits to the commissioner 
2.22 	for approval to establish a charter school under subdivision 4 attesting to its review and 
2.23 	approval process before chartering a school.
2.24 	~~"Affidavit" means the form an authorizer submits to the commissioner that is a~~ 
2.25 	~~precondition to a charter school organizing an affiliated nonprofit building corporation~~ 
2.26 	~~under subdivision 17a.~~
2.27 	(b) The following organizations may authorize one or more charter schools:
2.28 	(1) a school board; intermediate school district school board; education district 
2.29 	organized under sections 123A.15 to 123A.19;
2.30 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
2.31 	of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 
2.32 	natural person that directly or indirectly, through one or more intermediaries, controls, 
2.33 	is controlled by, or is under common control with the nonpublic sectarian or religious 
2.34 	institution, and any other charitable organization under this clause that in the federal IRS 
2.35 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
3.1 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
3.2 	Foundations;
3.3 	(ii) is registered with the attorney general's office; and
3.4 	(iii) ~~reports an end-of-year fund balance of at least $2,000,000; and~~
3.5 	~~(iv)~~ is incorporated in the state of Minnesota and has been operating continuously 
3.6 	for at least five years but does not operate a charter school;
3.7 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
3.8 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
3.9 	chapter 136A; community college, state university, or technical college governed by the 
3.10 	Board of Trustees of the Minnesota State Colleges and Universities; or the University of 
3.11 	Minnesota; or
3.12 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
3.13 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
3.14 	of 1986, may authorize one or more charter schools if the charter school has operated 
3.15 	for at least three years under a different authorizer and if the nonprofit corporation has 
3.16 	existed for at least 25 years.
3.17 	(5) no more than ~~three~~ ten single-purpose authorizers that are charitable, nonsectarian 
3.18 	organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and 
3.19 	incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible 
3.20 	organizations interested in being approved as an authorizer under this paragraph must 
3.21 	submit a proposal to the commissioner that includes the provisions of paragraph (c) and 
3.22 	a five-year financial plan. Such authorizers shall consider and approve applications 
3.23 	using the criteria provided in subdivision 4 and shall not limit the applications it solicits, 
3.24 	considers, or approves to any single curriculum, learning program, or method.
3.25 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
3.26 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
3.27 	a school. The application for approval as a charter school authorizer must demonstrate 
3.28 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
3.29 	school under this section. The commissioner must approve or disapprove an application 
3.30 	within ~~60~~ 45 business days of the application deadline. If the commissioner disapproves 
3.31 	the application, the commissioner must notify the applicant of the specific deficiencies 
3.32 	in writing and the applicant then has 20 business days to address the deficiencies to the 
3.33 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
3.34 	business days to make a final decision to approve or disapprove the application. Failing to 
3.35 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
4.1 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
4.2 	the applicant's:
4.3 	(1) capacity and infrastructure;
4.4 	(2) application criteria and process;
4.5 	(3) contracting process;
4.6 	(4) ongoing oversight and evaluation processes; and
4.7 	(5) renewal criteria and processes.
4.8 	(d) ~~The affidavit to be submitted to and evaluated by~~ An applicant must include in 
4.9 	its application to the commissioner ~~must include~~ to be an approved authorizer at least 
4.10 	the following:
4.11 	(1) how chartering schools is a way for the organization to carry out its mission;
4.12 	(2) a description of the capacity of the organization to serve as an authorizer, 
4.13 	including the personnel who will perform the authorizing duties, their qualifications, the 
4.14 	amount of time they will be assigned to this responsibility, and the financial resources 
4.15 	allocated by the organization to this responsibility;
4.16 	(3) a description of the application and review process the authorizer will use to make 
4.17 	decisions regarding the granting of charters~~, which will include at least the following:~~;
4.18 	~~(i) how the statutory purposes defined in subdivision 1 are addressed;~~
4.19 	~~(ii) the mission, goals, program model, and student performance expectations;~~
4.20 	~~(iii) an evaluation plan for the school that includes criteria for evaluating educational,~~ 
4.21 	~~organizational, and fiscal plans;~~
4.22 	~~(iv) the school's governance plan;~~
4.23 	~~(v) the financial management plan; and~~
4.24 	~~(vi) the administration and operations plan;~~
4.25 	(4) a description of the type of contract it will arrange with the schools it charters 
4.26 	that meets the provisions of subdivision 6 ~~and defines the rights and responsibilities of the~~ 
4.27 	~~charter school for governing its educational program, controlling its funds, and making~~ 
4.28 	~~school management decisions~~;
4.29 	(5) the process to be used for providing ongoing oversight of the school consistent 
4.30 	with the contract expectations specified in clause (4) that assures that the schools chartered 
4.31 	are complying with both the provisions of applicable law and rules, and with the contract;
4.32 	(6) a description of the criteria and process the authorizer will use to grant expanded 
4.33 	applications under subdivision 4, paragraph (j);
4.34 	(7) the process for making decisions regarding the renewal or termination of 
4.35 	the school's charter based on evidence that demonstrates the academic, organizational, 
5.1 	and financial competency of the school, including its success in increasing student 
5.2 	achievement and meeting the goals of the charter school agreement; and
5.3 	~~(7)~~ (8) an assurance specifying that the organization is committed to serving as 
5.4 	an authorizer for the full five-year term.
5.5 	(e) A disapproved applicant under this ~~paragraph~~ section may resubmit an 
5.6 	application during a future application period.
5.7 	(f) If the governing board of an approved authorizer that has chartered multiple 
5.8 	schools votes to withdraw as an approved authorizer for a reason unrelated to any 
5.9 	cause under subdivision 23, the authorizer must notify all its chartered schools and the 
5.10 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 
5.11 	the next calendar year. The commissioner shall approve the transfer of a charter school to 
5.12 	a new authorizer under this paragraph after the new authorizer submits a transfer affidavit 
5.13 	to the commissioner.
5.14 	~~(e)~~(g)  The authorizer must participate in department-approved training.
5.15 	~~(f)~~ (h) An authorizer that chartered a school before August 1, 2009, must apply by 
5.16 	~~June~~ September 30, ~~2011~~ 2012, to the commissioner for approval, under paragraph (c), to 
5.17 	continue as an authorizer under this section. For purposes of this paragraph, an authorizer 
5.18 	that fails to submit a timely application is ineligible to charter a school after June 30, 2013.
5.19 	~~(g)~~ (i) The commissioner shall review an authorizer's performance every five years 
5.20 	in a manner and form determined by the commissioner and may review an authorizer's 
5.21 	performance more frequently at the commissioner's own initiative or at the request of a 
5.22 	charter school operator, charter school board member, or other interested party. The 
5.23 	commissioner, after completing the review, shall transmit a report with findings to the 
5.24 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
5.25 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
5.26 	to corrective action, which may include terminating the contract with the charter school 
5.27 	board of directors of a school it chartered. The commissioner must notify the authorizer 
5.28 	in writing of any findings that may subject the authorizer to corrective action and 
5.29 	the authorizer then has 15 business days to request an informal hearing before the 
5.30 	commissioner takes corrective action. If the commissioner terminates a contract between 
5.31 	an authorizer and a charter school under this paragraph, the commissioner shall assist the 
5.32 	charter school in acquiring a new authorizer.
5.33 	~~(h)~~ (j) The commissioner may at any time take corrective action against an 
5.34 	authorizer, including terminating an authorizer's ability to charter a school for:
5.35 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
5.36 	commissioner approved the authorizer;
6.1 	(2) violating a term of the chartering contract between the authorizer and the charter 
6.2 	school board of directors; or
6.3 	(3) unsatisfactory performance as an approved authorizer.
6.4 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
6.5 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
6.6 	1, or a group of individuals that includes one or more licensed teachers under section 
6.7 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
6.8 	authorizer's affidavit under paragraph (b). The school must be organized and operated 
6.9 	as a ~~cooperative under chapter 308A or~~ nonprofit corporation under chapter 317A and 
6.10 	the provisions under the applicable chapter shall apply to the school except as provided 
6.11 	in this section.
6.12 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
6.13 	section and section 124D.11, may create a corporation for the purpose of establishing a 
6.14 	charter school.
6.15 	(b) Before the operators may establish and operate a school, the authorizer must file 
6.16 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
6.17 	must file a separate affidavit for each school it intends to charter. The affidavit must 
6.18 	state the terms and conditions under which the authorizer would charter a school and 
6.19 	how the authorizer intends to oversee the fiscal and student performance of the charter 
6.20 	school and to comply with the terms of the written contract between the authorizer 
6.21 	and the charter school board of directors under subdivision 6. The commissioner must 
6.22 	approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 
6.23 	affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 
6.24 	the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 
6.25 	days to address the deficiencies. If the authorizer does not address deficiencies to the 
6.26 	commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 
6.27 	commissioner approval precludes an authorizer from chartering the school that is the 
6.28 	subject of this affidavit.
6.29 	(c) The authorizer may prevent an approved charter school from opening for 
6.30 	operation if, among other grounds, the charter school violates this section or does not meet 
6.31 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
6.32 	process or are stipulated in the charter school contract.
6.33 	(d) The operators authorized to organize and operate a school, before entering into a 
6.34 	contract or other agreement for professional or other services, goods, or facilities, must 
6.35 	incorporate as a ~~cooperative under chapter 308A or as a~~ nonprofit corporation under 
6.36 	chapter 317A and must establish a board of directors composed of at least five members 
7.1 	who are not related parties until a timely election for members of the ongoing charter 
7.2 	school board of directors is held according to the school's articles and bylaws under 
7.3 	paragraph (f). A charter school board of directors must be composed of at least five 
7.4 	members who are not related parties. Staff members employed at the school, including 
7.5 	teachers providing instruction under a contract with a cooperative, and all parents or legal 
7.6 	guardians of children enrolled in the school are the voters eligible to elect the members 
7.7 	of the school's board of directors. A charter school must notify eligible voters of the 
7.8 	school board election dates at least 30 days before the election. Board of director meetings 
7.9 	must comply with chapter 13D.
7.10 	(e) Upon the request of an individual, the charter school must make available in 
7.11 	a timely fashion the minutes of meetings of the board of directors, and of members 
7.12 	and committees having any board-delegated authority; financial statements showing all 
7.13 	operations and transactions affecting income, surplus, and deficit during the school's last 
7.14 	annual accounting period; and a balance sheet summarizing assets and liabilities on the 
7.15 	closing date of the accounting period. A charter school also must post on its official Web 
7.16 	site information identifying its authorizer and indicate how to contact that authorizer and 
7.17 	include that same information about its authorizer in other school materials that it makes 
7.18 	available to the public.
7.19 	(f) Every charter school board member shall attend ~~department-approved~~ ongoing
7.20 	training on board governance, including training on the board's role and responsibilities, 
7.21 	employment policies and practices, and financial management, throughout the member's 
7.22 	term. A board member who does not begin the required initial training within six months 
7.23 	~~of~~ after being seated and complete ~~the required~~ that training within 12 months of being 
7.24 	seated on the board is ineligible to continue to serve as a board member.
7.25 	(g) The ongoing board must be elected before the school completes its third year 
7.26 	of operation. Board elections must be held at a convenient time during ~~a time when~~ the
7.27 	school ~~is in session~~ year but may not be conducted on days when the school is closed for 
7.28 	holidays or vacations. The charter school board of directors shall be composed of at least 
7.29 	five nonrelated members and include: (i) at least one licensed teacher employed as a 
7.30 	teacher at the school or a licensed teacher providing instruction under a contact between 
7.31 	the charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled 
7.32 	in the charter school who is not an employee of the charter school; and (iii) an interested 
7.33 	community member who is not employed by the charter school and does not have a 
7.34 	child enrolled in the school. The board may be a teacher majority board composed of 
7.35 	teachers described in this paragraph. The chief financial officer and the chief administrator 
7.36 	are ex-officio nonvoting board members. Board bylaws shall outline the process and 
8.1 	procedures for changing the board's governance model, consistent with chapter 317A. A 
8.2 	board may change its governance model only:
8.3 	(1) by a majority vote of the board of directors and the licensed teachers employed 
8.4 	by the school, including licensed teachers providing instruction under a contract between 
8.5 	the school and a cooperative; and
8.6 	(2) with the authorizer's approval.
8.7 	Any change in board governance must conform with the board structure established 
8.8 	under this paragraph.
8.9 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
8.10 	upon the bargaining unit status of the employees of the school.
8.11 	(i) The granting or renewal of a charter school by an authorizer must not be 
8.12 	contingent on the charter school being required to contract, lease, or purchase services 
8.13 	from the authorizer. Any potential contract, lease, or purchase of service from an 
8.14 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
8.15 	process, and be a separate contract from the charter contract. The school must document 
8.16 	the open bidding process. An authorizer must not enter into a contract to provide 
8.17 	management and financial services for a school that it authorizes, unless the school 
8.18 	documents that it received at least two competitive bids.
8.19 	(j) An authorizer may permit the board of directors of a charter school to expand 
8.20 	the operation of the charter school to additional sites or to add additional grades at the 
8.21 	school beyond those described in the authorizer's original affidavit as approved by the 
8.22 	commissioner only after submitting a supplemental affidavit for ~~approval~~ review and 
8.23 	comment to the commissioner in a form and manner prescribed by the commissioner. The 
8.24 	supplemental affidavit must ~~show~~ document that:
8.25 	(1) the ~~expansion~~ proposed ~~by the charter school is supported by~~ expansion plan 
8.26 	demonstrates need and projected enrollment;
8.27 	(2) the ~~charter school~~ expansion is warranted, at a minimum, by longitudinal data 
8.28 	demonstrating students' improved academic performance and growth on statewide 
8.29 	assessments under chapter 120B;
8.30 	(3) the charter school is ~~fiscally~~ financially sound and ~~has the financial capacity~~ the 
8.31 	financing needed to implement the proposed expansion exists; and
8.32 	(4) the ~~authorizer finds that the~~ charter school has the governance structure and 
8.33 	management capacity to carry out its expansion.
8.34 	(k) The commissioner shall have 30 business days to review and comment on the 
8.35 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
8.36 	the supplemental affidavit and the authorizer then has ~~30~~ 20 business days to address, to the 
9.1 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The authorizer 
9.2 	must not give final approval to the school ~~may not~~ to expand grades or add sites until the 
9.3 	commissioner ~~has approved the supplemental affidavit~~ completes the review and comment 
9.4 	process. The commissioner's approval or disapproval of a supplemental affidavit is final.
9.5 	(l) A charter school operating under this section may merge with another charter 
9.6 	school only after the board of directors and the authorizer of each charter school formally 
9.7 	approve the merger. The merger must comply with chapter 317A and section 124D.11, 
9.8 	subdivision 9, paragraph (g). After a merger is formally approved by the affected boards 
9.9 	of directors and authorizers, the charter schools may negotiate a merger plan that includes 
9.10 	at least the following:
9.11 	(1) a merger budget, a multiyear operating budget for the merged charter school, 
9.12 	and a long-range financial plan that provides for the transfer of assets and liabilities to 
9.13 	the merged charter school;
9.14 	(2) a process for transferring responsibility for governing, administering, and 
9.15 	operating the merged charter school; and
9.16 	(3) a statement of academic and student engagement goals.
9.17 	The boards of directors of the merging charter schools and the authorizer that agrees to 
9.18 	charter the merged charter school must approve the merger plan. After the merger plan 
9.19 	is approved, the authorizer of the merged charter school must submit an affidavit to the 
9.20 	commissioner for review and comment. The commissioner must complete the review 
9.21 	and comment of the affidavit within 30 business days. The authorizer must not give 
9.22 	final approval for the merger to take effect until the commissioner completes the review 
9.23 	and comment.
9.24 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving as a 
9.25 	member of the charter school board of directors if the individual, an immediate family 
9.26 	member, or the individual's partner is an owner, employee or agent of, or a contractor 
9.27 	with a for-profit or nonprofit entity or individual with whom the charter school contracts, 
9.28 	directly or indirectly, for professional services, goods, or facilities. A violation of this 
9.29 	prohibition renders a contract voidable at the option of the commissioner or the charter 
9.30 	school board of directors. A member of a charter school board of directors who violates 
9.31 	this prohibition is individually liable to the charter school for any damage caused by 
9.32 	the violation.
9.33 	(b) No member of the board of directors, employee, officer, or agent of a charter 
9.34 	school shall participate in selecting, awarding, or administering a contract if a conflict 
9.35 	of interest exists. A conflict exists when:
9.36 	(1) the board member, employee, officer, or agent;
10.1 	(2) the immediate family of the board member, employee, officer, or agent;
10.2 	(3) the partner of the board member, employee, officer, or agent; or
10.3 	(4) an organization that employs, or is about to employ any individual in clauses 
10.4 	(1) to (3),
10.5 	has a financial or other interest in the entity with which the charter school is contracting. 
10.6 	A violation of this prohibition renders the contract void.
10.7 	(c) Any employee, agent, or board member of the authorizer who participates 
10.8 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
10.9 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
10.10 	chartered by that authorizer.
10.11 	(d) An individual may serve as a member of the board of directors if no conflict of 
10.12 	interest under paragraph (a) exists.
10.13 	(e) The conflict of interest provisions under this subdivision do not apply to 
10.14 	compensation paid to a teacher employed by the charter school who also serves as a 
10.15 	member of the board of directors.
10.16 	(f) The conflict of interest provisions under this subdivision do not apply to a teacher 
10.17 	who provides services to a charter school through a cooperative formed under chapter 
10.18 	308A when the teacher also serves on the charter school board of directors.
10.19 		Subd. 5.Conversion of existing schools. A board of an independent or special 
10.20 	school district may convert one or more of its existing schools to charter schools under 
10.21 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
10.22 	conversion. The conversion must occur at the beginning of an academic year.
10.23 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
10.24 	form of a written contract signed by the authorizer and the board of directors of the charter 
10.25 	school. The contract must be completed within 45 business days of the commissioner's 
10.26 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
10.27 	copy of the signed charter contract within ten business days of its execution. The contract 
10.28 	for a charter school must be in writing and contain at least the following:
10.29 	(1) a declaration of the purposes in subdivision 1 that the school intends to carry out 
10.30 	and how the school will report its implementation of those purposes;
10.31 	(2) a description of the school program and the specific academic and nonacademic 
10.32 	outcomes that pupils must achieve;
10.33 	(3) a statement of admission policies and procedures;
10.34 	(4) a governance, management, and administration plan for the school;
11.1 	(5) signed agreements from charter school board members to comply with all 
11.2 	federal and state laws governing organizational, programmatic, and financial requirements 
11.3 	applicable to charter schools;
11.4 	(6) the criteria, processes, and procedures that the authorizer will use for ongoing 
11.5 	oversight of operational, financial, and academic performance;
11.6 	(7) the performance evaluation that is a prerequisite for reviewing a charter contract 
11.7 	under subdivision 15;
11.8 	(8) types and amounts of insurance liability coverage to be obtained by the charter 
11.9 	school;
11.10 	(9) indemnify and hold harmless the commissioner and the authorizer, and their 
11.11 	officers, agents, and employees from any suits, claims, or liability arising under the 
11.12 	contract or from the operation of the charter school;
11.13 	(10) the term of the contract, which may be up to three years for an initial contract 
11.14 	plus an additional preoperational planning year, and up to five years for a renewed contract 
11.15 	if warranted by the school's academic, financial, and operational performance;
11.16 	~~(10)~~ (11) how the board of directors or the operators of the charter school will 
11.17 	provide special instruction and services for children with a disability under sections 
11.18 	125A.03 to 125A.24, and 125A.65, a description of the financial parameters within 
11.19 	which the charter school will operate to provide the special instruction and services to 
11.20 	children with a disability;
11.21 	~~(11)~~ (12) the process and criteria the authorizer intends to use to monitor and 
11.22 	evaluate the fiscal and student performance of the charter school, consistent with 
11.23 	subdivision 15; and
11.24 	~~(12)~~ (13) the plan for an orderly closing of the school under chapter ~~308A or~~ 317A, 
11.25 	if the closure is a termination for cause, a voluntary termination, or a nonrenewal of 
11.26 	the contract, and that includes establishing the responsibilities of the school board of 
11.27 	directors and the authorizer and notifying the commissioner, authorizer, school district in 
11.28 	which the charter school is located, and parents of enrolled students about the closure, 
11.29 	the transfer of student records to students' resident districts, and procedures for closing 
11.30 	financial operations.
11.31 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
11.32 	commissioner and its authorizer by December 31 each year.
11.33 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
11.34 	include with the report a copy of all charter school agreements for corporate management 
11.35 	services. If the entity that provides the professional services to the charter school is 
11.36 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
12.1 	must file with the commissioner by February 15 a copy of the annual return required under 
12.2 	section 6033 of the Internal Revenue Code of 1986.
12.3 	(c) If the ~~commissioner receives an~~ audit report ~~indicating~~ finds that a material 
12.4 	weakness exists in the financial reporting systems of a charter school, the charter school 
12.5 	must submit a written report to the commissioner explaining how the material weakness 
12.6 	will be ~~resolved~~ mitigated.
12.7 		Subd. 7.Public status; exemption from statutes and rules. A charter school is 
12.8 	a public school and is part of the state's system of public education. A charter school is 
12.9 	exempt from all statutes and rules applicable to a school, school board, or school district 
12.10 	unless a statute or rule is made specifically applicable to a charter school or is included 
12.11 	in this section.
12.12 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
12.13 	federal, state, and local health and safety requirements applicable to school districts.
12.14 	(b) A school must comply with statewide accountability requirements governing 
12.15 	standards and assessments in chapter 120B.
12.16 	(c) A school authorized by a school board may be located in any district, unless the 
12.17 	school board of the district of the proposed location disapproves by written resolution.
12.18 	(d) A charter school must be nonsectarian in its programs, admission policies, 
12.19 	employment practices, and all other operations. An authorizer may not authorize a charter 
12.20 	school or program that is affiliated with a nonpublic sectarian school or a religious 
12.21 	institution. A charter school student must be released for religious instruction, consistent 
12.22 	with section 120A.22, subdivision 12, clause (3).
12.23 	(e) Charter schools must not be used as a method of providing education or 
12.24 	generating revenue for students who are being home-schooled.
12.25 	(f) The primary focus of a charter school must be to provide a comprehensive 
12.26 	program of instruction for at least one grade or age group from five through 18 years 
12.27 	of age. Instruction may be provided to people younger than five years and older than 
12.28 	18 years of age.
12.29 	(g) A charter school may not charge tuition.
12.30 	(h) A charter school is subject to and must comply with chapter 363A and section 
12.31 	121A.04.
12.32 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
12.33 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
12.34 	123B.34 to 123B.39.
12.35 	(j) A charter school is subject to the same financial audits, audit procedures, and 
12.36 	audit requirements as a district. Audits must be conducted in compliance with generally 
13.1 	accepted governmental auditing standards, the federal Single Audit Act, if applicable, 
13.2 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
13.3 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and 
13.4 	471.425. The audit must comply with the requirements of sections 123B.75 to 123B.83, 
13.5 	except to the extent deviations are necessary because of the program at the school. 
13.6 	Deviations must be approved by the commissioner and authorizer. The Department of 
13.7 	Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 
13.8 	or compliance audits. A charter school determined to be in statutory operating debt under 
13.9 	sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
13.10 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
13.11 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
13.12 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
13.13 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
13.14 	section 121A.11, subdivision 3.
13.15 	(n) A charter school offering online courses or programs must comply with section 
13.16 	124D.095.
13.17 	(o) A charter school and charter school board of directors are subject to chapter 181.
13.18 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
13.19 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
13.20 	the management of local records.
13.21 	(q) A charter school that provides early childhood health and developmental 
13.22 	screening must comply with sections 121A.16 to 121A.19.
13.23 		Subd. 8a.Aid reduction. The commissioner may reduce a charter school's state aid 
13.24 	under section 127A.42 or 127A.43 if the charter school board fails to correct a violation 
13.25 	under this section.
13.26 		Subd. 8b.Aid reduction for violations. The commissioner may reduce a charter 
13.27 	school's state aid by an amount not to exceed 60 percent of the charter school's basic 
13.28 	revenue for the period of time that a violation of law occurs.
13.29 		Subd. 9.Admission requirements. A charter school may limit admission to:
13.30 	(1) pupils within an age group or grade level;
13.31 	(2) pupils who are eligible to participate in the graduation incentives program under 
13.32 	section 124D.68; or
13.33 	(3) residents of a specific geographic area in which the school is located when 
13.34 	the majority of students served by the school are members of underserved populations 
13.35 	in which the school is located when the majority of students served by the school are 
13.36 	members of underserved populations.
14.1 	A charter school shall enroll an eligible pupil who submits a timely application, 
14.2 	unless the number of applications exceeds the capacity of a program, class, grade level, or 
14.3 	building. In this case, pupils must be accepted by lot. The charter school must develop 
14.4 	and publish a lottery policy and process that it must use when accepting pupils by lot.
14.5 	A charter school shall give enrollment preference ~~for enrollment~~ to a sibling of an 
14.6 	enrolled pupil and to a foster child of that pupil's parents and may give preference for 
14.7 	enrolling children of the school's ~~teachers~~ staff before accepting other pupils by lot.
14.8 	A charter school may not limit admission to pupils on the basis of intellectual ability, 
14.9 	measures of achievement or aptitude, or athletic ability and may not establish any criteria 
14.10 	or requirements for admission that are inconsistent with this subdivision.
14.11 	The charter school shall not distribute any services or goods of value to students, 
14.12 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
14.13 	charter school.
14.14 		Subd. 10.Pupil performance. A charter school must design its programs to at 
14.15 	least meet the outcomes adopted by the commissioner for public school students. In 
14.16 	the absence of the commissioner's requirements, the school must meet the outcomes 
14.17 	contained in the contract with the authorizer. The achievement levels of the outcomes 
14.18 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
14.19 	the commissioner for public school students.
14.20 		Subd. 11.Employment and other operating matters. (a) A charter school must 
14.21 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
14.22 	who hold valid licenses to perform the particular service for which they are employed in 
14.23 	the school. The charter school's state aid may be reduced under section 127A.43 if the 
14.24 	school employs a teacher who is not appropriately licensed or approved by the board of 
14.25 	teaching. The school may employ necessary employees who are not required to hold 
14.26 	teaching licenses to perform duties other than teaching and may contract for other services. 
14.27 	The school may discharge teachers and nonlicensed employees. The charter school board 
14.28 	is subject to section 181.932. When offering employment to a prospective employee, a 
14.29 	charter school must give that employee a written description of the terms and conditions 
14.30 	of employment and the school's personnel policies.
14.31 	(b) A person, without holding a valid administrator's license, may perform 
14.32 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
14.33 	establish qualifications for persons that hold administrative, supervisory, or instructional 
14.34 	leadership roles. The qualifications shall include at least the following areas: instruction 
14.35 	and assessment; human resource and personnel management; financial management; 
14.36 	legal and compliance management; effective communication; and board, authorizer, and 
15.1 	community relationships. The board of directors shall use those qualifications as the basis 
15.2 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
15.3 	supervisory, or instructional leadership roles. The board of directors and an individual 
15.4 	who does not hold a valid administrative license and who serves in an administrative, 
15.5 	supervisory, or instructional leadership position shall develop a professional development 
15.6 	plan. Documentation of the implementation of the professional development plan of these 
15.7 	persons shall be included in the school's annual report.
15.8 	(c) The board of directors also shall decide matters related to the operation of the 
15.9 	school, including budgeting, curriculum and operating procedures.
15.10 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
15.11 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
15.12 	with a disability as though it were a district.
15.13 		Subd. 13.Length of school year. A charter school must provide instruction 
15.14 	each year for at least the number of days required by section 120A.41. It may provide 
15.15 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
15.16 		Subd. 14.Annual public reports. A charter school must publish an annual report 
15.17 	approved by the board of directors. The annual report must at least include information 
15.18 	on school enrollment, student attrition, governance and management, staffing, finances, 
15.19 	academic performance, operational performance, innovative practices and implementation, 
15.20 	and future plans. A charter school must distribute the annual report by publication, mail, 
15.21 	or electronic means to the ~~commissioner,~~ authorizer, school employees, and parents and 
15.22 	legal guardians of students enrolled in the charter school and must also post the report on 
15.23 	the charter school's official Web site. The reports are public data under chapter 13.
15.24 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
15.25 	evaluation of the school's performance before the authorizer renews the charter contract. 
15.26 	The department must review and comment on the authorizer's evaluation process at the 
15.27 	time the authorizer submits its application for approval and each time the authorizer 
15.28 	undergoes its five-year review under subdivision 3, paragraph (e).
15.29 	(b) An authorizer shall monitor and evaluate the fiscal, operational, and student 
15.30 	performance of the school, and may for this purpose annually assess a charter school 
15.31 	a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 
15.32 	charter school contract.
15.33 	(c) The fee that each charter school pays to an authorizer each year is the greater of:
15.34 	(1) the basic formula allowance for that year; or
15.35 	(2) the lesser of:
15.36 	(i) the maximum fee factor times the basic formula allowance for that year; or
16.1 	(ii) the fee factor times the basic formula allowance for that year times the charter 
16.2 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
16.3 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
16.4 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
16.5 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
16.6 	(d) The department and any charter school it charters must not assess or pay a fee 
16.7 	under paragraphs (b) and (c).
16.8 	(e) For the preoperational planning period, the authorizer may assess a charter school 
16.9 	a fee equal to the basic formula allowance.
16.10 	(f) By September 30 of each year, an authorizer shall submit to the commissioner 
16.11 	a statement of expenditures related to chartering activities during the previous school 
16.12 	year ending June 30. A copy of the statement shall be given to all schools chartered by 
16.13 	the authorizer.
16.14 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
16.15 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
16.16 	operation must notify the district in which the school is located and the Department of 
16.17 	Education if it will provide its own transportation or use the transportation services of the 
16.18 	district in which it is located for the fiscal year.
16.19 	(b) If a charter school elects to provide transportation for pupils, the transportation 
16.20 	must be provided by the charter school within the district in which the charter school is 
16.21 	located. The state must pay transportation aid to the charter school according to section 
16.22 	124D.11, subdivision 2.
16.23 	For pupils who reside outside the district in which the charter school is located, the 
16.24 	charter school is not required to provide or pay for transportation between the pupil's 
16.25 	residence and the border of the district in which the charter school is located. A parent 
16.26 	may be reimbursed by the charter school for costs of transportation from the pupil's 
16.27 	residence to the border of the district in which the charter school is located if the pupil is 
16.28 	from a family whose income is at or below the poverty level, as determined by the federal 
16.29 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
16.30 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
16.31 	more than 250 miles per week.
16.32 	At the time a pupil enrolls in a charter school, the charter school must provide the 
16.33 	parent or guardian with information regarding the transportation.
16.34 	(c) If a charter school does not elect to provide transportation, transportation for 
16.35 	pupils enrolled at the school must be provided by the district in which the school is 
16.36 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
17.1 	pupil residing in the same district in which the charter school is located. Transportation 
17.2 	may be provided by the district in which the school is located, according to sections 
17.3 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
17.4 	district. If the district provides the transportation, the scheduling of routes, manner and 
17.5 	method of transportation, control and discipline of the pupils, and any other matter relating 
17.6 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
17.7 	control, and management of the district.
17.8 		Subd. 17.Leased space. A charter school may lease space from an independent 
17.9 	or special school board eligible to be an authorizer, other public organization, private, 
17.10 	nonprofit nonsectarian organization, private property owner, or a sectarian organization 
17.11 	if the leased space is constructed as a school facility. The department must review and 
17.12 	approve or disapprove leases in a timely manner.
17.13 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
17.14 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
17.15 	existing facility to serve as a school or (ii) to construct a new school facility, an authorizer 
17.16 	must submit an affidavit to the commissioner for approval in the form and manner the 
17.17 	commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
17.18 	(b) An affiliated nonprofit building corporation under this subdivision must:
17.19 	(1) be incorporated under section 317A and comply with applicable Internal 
17.20 	Revenue Service regulations;
17.21 	(2) submit to the commissioner each fiscal year a list of current board members 
17.22 	and a copy of its annual audit; and
17.23 	(3) comply with government data practices law under chapter 13.
17.24 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
17.25 	property or facilities it does not own. A charter school that leases a facility from an 
17.26 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
17.27 	to receive charter school lease aid. The state is immune from liability resulting from a 
17.28 	contract between a charter school and an affiliated nonprofit building corporation.
17.29 	(c) A charter school may organize an affiliated nonprofit building corporation to 
17.30 	renovate or purchase an existing facility to serve as a school if the charter school:
17.31 	(1) has been operating for at least five consecutive school years ~~and the school's~~ 
17.32 	~~charter has been renewed for a five-year term~~;
17.33 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
17.34 	preceding five fiscal years;
17.35 	(3) has a long-range strategic and financial plan;
17.36 	(4) completes a feasibility study of available buildings; and
18.1 	(5) documents ~~sustainable~~ enrollment projections and the need to use an affiliated 
18.2 	building corporation to renovate or purchase an existing facility to serve as a school.
18.3 	(d) A charter school may organize an affiliated nonprofit building corporation to 
18.4 	construct a new school facility if the charter school:
18.5 	(1) demonstrates the lack of facilities available to serve as a school;
18.6 	(2) has been operating for at least eight consecutive school years;
18.7 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
18.8 	preceding eight fiscal years;
18.9 	(4) completes a feasibility study of facility options;
18.10 	(5) has a long-range strategic and financial plan that includes sustainable enrollment 
18.11 	projections and demonstrates the need for constructing a new school facility; and
18.12 	(6) has a positive review and comment from the commissioner under section 
18.13 	123B.71.
18.14 		Subd. 19.Disseminate information. (a) The authorizer, the operators, and the 
18.15 	department must disseminate information to the public on how to form and operate 
18.16 	a charter school. Charter schools must disseminate information about how to use 
18.17 	the offerings of a charter school. Targeted groups include low-income families and 
18.18 	communities, students of color, and students who are at risk of academic failure.
18.19 	(b) Authorizers, operators, and the department also may disseminate information 
18.20 	about the successful best practices in teaching and learning demonstrated by charter 
18.21 	schools.
18.22 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
18.23 	makes a written request for an extended leave of absence to teach at a charter school, 
18.24 	the district must grant the leave. The district must grant a leave not to exceed a total of 
18.25 	five years. Any request to extend the leave shall be granted only at the discretion of the 
18.26 	school board. The district may require that the request for a leave or extension of leave 
18.27 	be made before February 1 in the school year preceding the school year in which the 
18.28 	teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is 
18.29 	scheduled to terminate. Except as otherwise provided in this subdivision and except for 
18.30 	section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but 
18.31 	not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
18.32 	During a leave, the teacher may continue to aggregate benefits and credits in the 
18.33 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
18.34 	subdivision 22.
18.35 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
18.36 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
19.1 	provisions. The board of directors of a charter school is a public employer, for the 
19.2 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
19.3 	Bargaining units at the school must be separate from any other units within an authorizing 
19.4 	district, except that bargaining units may remain part of the appropriate unit within an 
19.5 	authorizing district, if the employees of the school, the board of directors of the school, 
19.6 	the exclusive representative of the appropriate unit in the authorizing district, and the 
19.7 	board of the authorizing district agree to include the employees in the appropriate unit of 
19.8 	the authorizing district.
19.9 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
19.10 	school must be public school teachers for the purposes of chapters 354 and 354a.
19.11 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
19.12 	public employees for the purposes of chapter 353.
19.13 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
19.14 	The duration of the contract with an authorizer must be for the term contained in the 
19.15 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
19.16 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
19.17 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
19.18 	At least 60 business days before not renewing or terminating a contract, the authorizer 
19.19 	shall notify the board of directors of the charter school of the proposed action in writing. 
19.20 	The notice shall state the grounds for the proposed action in reasonable detail and that the 
19.21 	charter school's board of directors may request in writing an informal hearing before the 
19.22 	authorizer within 15 business days of receiving notice of nonrenewal or termination of the 
19.23 	contract. Failure by the board of directors to make a written request for a hearing within 
19.24 	the 15-business-day period shall be treated as acquiescence to the proposed action. Upon 
19.25 	receiving a timely written request for a hearing, the authorizer shall give ten business days' 
19.26 	notice to the charter school's board of directors of the hearing date. The authorizer shall 
19.27 	conduct an informal hearing before taking final action. The authorizer shall take final 
19.28 	action to renew or not renew a contract no later than 20 business days before the proposed 
19.29 	date for terminating the contract or the end date of the contract.
19.30 	(b) A contract may be terminated or not renewed upon any of the following grounds:
19.31 	(1) failure to meet the requirements for pupil performance contained in the contract;
19.32 	(2) failure to meet generally accepted standards of fiscal management;
19.33 	(3) violations of law; or
19.34 	(4) other good cause shown.
19.35 	If a contract is terminated or not renewed under this paragraph, the school must be 
19.36 	dissolved according to the applicable provisions of ~~chapter 308A or~~ 317A.
20.1 	(c) If the authorizer and the charter school board of directors mutually agree to 
20.2 	terminate or not renew the contract, a ~~change in~~ transfer of authorizers is allowed ~~if the~~ 
20.3 	~~commissioner approves the transfer to a different eligible authorizer to authorize the~~ 
20.4 	~~charter school~~. Both parties must jointly submit their intent in writing to the commissioner 
20.5 	to mutually terminate the contract. The authorizer that is a party to the existing contract 
20.6 	~~at least~~ must inform the ~~approved different eligible~~ proposed authorizer about the fiscal 
20.7 	and operational status and student performance of the school. Before the commissioner 
20.8 	determines whether to approve a transfer of authorizer, the ~~commissioner first~~ proposed 
20.9 	authorizer must ~~determine whether the charter school and prospective new authorizer can~~ 
20.10 	~~identify and effectively resolve those circumstances causing the previous authorizer and~~ 
20.11 	~~the charter school to mutually agree to terminate the contract~~ identify and mitigate any 
20.12 	outstanding issues in the proposed charter contract that were unresolved in the previous 
20.13 	charter contract. If no transfer of authorizer is approved, the school must be dissolved 
20.14 	according to applicable law and the terms of the contract.
20.15 	(d) The commissioner, after providing reasonable notice to the board of directors of 
20.16 	a charter school and the existing authorizer, and after providing an opportunity for a public 
20.17 	hearing, may terminate the existing contract between the authorizer and the charter school 
20.18 	board if the charter school has a history of:
20.19 	(1) failure to meet pupil performance requirements contained in the contract;
20.20 	(2) financial mismanagement or failure to meet generally accepted standards of 
20.21 	fiscal management; or
20.22 	(3) repeated or major violations of the law.
20.23 	~~(e) If the commissioner terminates a charter school contract under subdivision 3,~~ 
20.24 	~~paragraph (g), the commissioner shall provide the charter school with information about~~ 
20.25 	~~other eligible authorizers.~~
20.26 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
20.27 	entering a lease of real property with a related party unless the lessor is a nonprofit 
20.28 	corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is 
20.29 	reasonable under section 124D.11, subdivision 4, clause (1).
20.30 	(b) For purposes of this section and section 124D.11:
20.31 	(1) "related party" means an affiliate or immediate relative of the other party in 
20.32 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
20.33 	(2) "affiliate" means a person that directly or indirectly, through one or more 
20.34 	intermediaries, controls, is controlled by, or is under common control with another person;
20.35 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
20.36 	adoption, or partnering is no more remote than first cousin;
21.1 	(4) "person" means an individual or entity of any kind; and
21.2 	(5) "control" means the ability to affect the management, operations, or policy 
21.3 	actions or decisions of a person, whether through ownership of voting securities, by 
21.4 	contract, or otherwise.
21.5 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
21.6 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
21.7 	section 124D.10, subdivision 23a."
21.8 	(d) If a charter school enters into as lessee a lease with a related party and the 
21.9 	charter school subsequently closes, the commissioner has the right to recover from the 
21.10 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
21.11 	subdivision 4, clause (1).
21.12 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
21.13 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
21.14 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
21.15 	same place as the pupil may enroll in the resident district or may submit an application 
21.16 	to a nonresident district according to section 124D.03 at any time. Applications and 
21.17 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
21.18 	The application and notice deadlines in section 124D.03 do not apply under these 
21.19 	circumstances. The closed charter school must transfer the student's educational records 
21.20 	within ten business days of closure to the student's school district of residence where the 
21.21 	records must be retained or transferred under section 120A.22, subdivision 7.
21.22 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
21.23 	school may sue and be sued.
21.24 	(b) The board may not levy taxes or issue bonds.
21.25 	(c) The commissioner, an authorizer, members of the board of an authorizer in 
21.26 	their official capacity, and employees of an authorizer are immune from civil or criminal 
21.27 	liability with respect to all activities related to a charter school they approve or authorize. 
21.28 	The charter school shall assume full liability for its activities and indemnify and hold 
21.29 	harmless the commissioner and the authorizer, and their officers, agents, and employees 
21.30 	from any suits, claims, or liability arising under the contract or from the operation of the 
21.31 	charter school.The board of directors shall obtain at least the amount of and types of 
21.32 	insurance up to the applicable tort liability limits under chapter 466. The charter school 
21.33 	board must submit a copy of the insurance policy to its authorizer and the commissioner 
21.34 	before starting operations. The charter school board must ~~submit changes in its insurance~~ 
21.35 	~~carrier or policy to~~ notify its authorizer ~~and the commissioner~~ of changes in insurance 
21.36 	carrier or policy amount limits within 20 business days of the change.