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SF2773 (Legislative Session 94 (2025-2026))

All charter school closures overseen by a trustee requirement provision

AI Generated Summary

Purpose of the Bill

This bill is focused on managing the closure process of charter schools in Minnesota. It introduces the appointment of a trustee to oversee the closure and ensures that the process is handled efficiently and transparently.

Main Provisions

  • Trustee Appointment: When a decision to close a charter school is made, the charter school's authorizer must appoint a closure trustee within five business days. This trustee is responsible for managing the closure process, overseeing financial matters, and ensuring compliance with all legal requirements.

  • Trustee Qualifications: The trustee must be a resident of Minnesota, possess relevant educational and work experience, and have no conflicts of interest with the charter school or authorizer. They must also pass background checks and may need to post a bond or have insurance.

  • Trustee Responsibilities: The trustee's duties include helping students transfer schools, ensuring student records are moved promptly, submitting necessary reports, maintaining insurance, and handling the dissolution process of the school. They are also responsible for managing the school's financial matters during closure.

  • Charter School Closure Fund: A fund is established to assist with the financial aspects of closing a charter school. It covers costs like external audits, insurance, legal dissolution processes, and the transfer of student records. The fund is maintained by the department, with an annual legislative appropriation until it reaches a cap.

  • Financial Management: The trustee must approve all financial transactions and may reimburse any wrongful payments made prior to closure. Remaining balances after creditors are satisfied must be returned to the closure fund or state general fund if applicable.

Significant Changes to Existing Law

  • Transfer of Authorizer's Fees: If an authorizer withdraws from a charter school, unspent fees are first directed to a charter school closure fund then to the state's general fund if the closure fund is at its cap.

  • Payments and Final Aid: After closure, the commissioner may withhold and then release state aid payments based on audits and necessary financial documentation being provided by the school. Any surplus or overpayment after creditor settlements also returns to designated funds as noted.

Relevant Terms

  • Charter school closure
  • Trustee
  • Authorizer
  • School dissolution
  • Student record transfer
  • State aid payments
  • Financial audits
  • Closure fund

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toEducation Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Requires notification of intent to withdraw and transfer of unexpended authorizer fees."
      ],
      "removed": [],
      "summary": "The bill modifies procedures related to the withdrawal of an authorizer from overseeing a charter school under section 124E.05.",
      "modified": []
    },
    "citation": "124E.05"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Changes are made to the rules regarding the transfer of charter schools to a new authorizer under section 124E.10.",
      "modified": [
        "Clarifications on transfer process and handling of unexpended fees."
      ]
    },
    "citation": "124E.10"
  },
  {
    "analysis": {
      "added": [
        "Details steps to be followed by a trustee during a charter school closure."
      ],
      "removed": [],
      "summary": "The bill refers to procedures for dissolution according to sections 317A.701 to 317A.791.",
      "modified": []
    },
    "citation": "317A.701 to 317A.791"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Limits are set for expenditures from the charter school closure fund in section 126C.10 subdivision 2.",
      "modified": [
        "Sets expenditure cap related to formula allowance."
      ]
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Final payments to closed charter schools are conditioned on receiving audited financial statements under section 123B.77.",
      "modified": [
        "Clarifications on final payment process contingent on audit results."
      ]
    },
    "citation": "123B.77"
  }
]

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