SF2773

SF2773 (Legislative Session 94 (2025-2026))

All charter school closures overseen by a trustee requirement provision

AI Generated Summary

Purpose of the Bill

The bill aims to establish a standardized process for closing charter schools in Minnesota, ensuring that the closure is managed effectively through the appointment of a closure trustee. It seeks to safeguard the interests of students, families, and taxpayers by properly handling the school's financial and operational matters during closure.

Main Provisions

Appointment of a Closure Trustee: Within five business days of deciding to close a charter school, the authorizer must appoint a closure trustee. The trustee will manage the closure process, ensuring appropriate handling of school records, assets, and resources.
Qualifications for Trustees: Trustees must be Minnesota residents with relevant degrees and experience. They must not have any conflicts of interest with the charter school or its authorizer.
Duties of the Trustee: The trustee will help students enroll in new schools, manage student records, ensure external audits are conducted, oversee financial details, and handle the liquidation of assets. The trustee also approves all financial transactions to prevent mismanagement.
Closure Fund: A charter school closure fund will be established, funded by legislative appropriations, to cover costs related to school closures such as audits, legal fees, and other dissolution-related services.
Handling of School Finances: The bill outlines the conditions under which remaining funds and assets are managed post-closure, including transferring unspent funds to the charter school closure fund or, if capped, to the state general fund.

Significant Changes

Mandatory Involvement of a Trustee: This legislation mandates the involvement of a professional trustee in the charter school closure process, which introduces a new level of oversight and accountability.
Creation of a Closure Fund: The establishment of the charter school closure fund is a new financial resource to support smooth school closures and protect taxpayer money from being misappropriated during the closure process.

Relevant Terms

Charter school closure
Closure trustee
Financial audits
Student records transfer
Closure fund
Liquidation of assets
Authorizer withdrawal

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 19, 2025	Senate	Floor	Action	Introduction and first reading
March 19, 2025	Senate	Floor	Action	Referred to	Education Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Requirement for authorizers to notify the commissioner and transfer unexpended fees."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies procedures for charter school authorizers withdrawing under section 124E.05.",
      "modified": [
        "Clarification on procedures for transferring unexpended fees to the state general or closure funds."
      ]
    },
    "citation": "124E.05",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References procedures related to charter school transfers, what constitutes unexpended fees, and student record transfers under section 124E.10.",
      "modified": [
        "Clarified the steps and parties responsible for transferring student records and unexpended fees."
      ]
    },
    "citation": "124E.10",
    "subdivision": "subdivision 5, subdivision 3, subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Incorporated statutory requirements for dissolution of school corporations under section 317A.701.",
      "modified": [
        "Outlined requirements for filing notices of intent to dissolve and handling creditors and claims."
      ]
    },
    "citation": "317A.701",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced to define the formula allowance in the context of charter school fund expenditures under section 126C.10.",
      "modified": [
        "Specified the expenditure cap for individual school closure processes."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies charter school closure payment procedures in reference to section 127A.45.",
      "modified": [
        "Allowances for post-closure state payment processes and final payment procedures."
      ]
    },
    "citation": "127A.45",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced regarding the receipt of audited financial statements for final payments under section 123B.77.",
      "modified": [
        "Detailed conditions for preliminary final payments after closure."
      ]
    },
    "citation": "123B.77",
    "subdivision": "subdivision 3"
  }
]