MN HF3481

Charter schools may create affiliated nonprofit building corporations to purchase, expand, renovate, or construct facilities only if they have operated for at least six consecutive years, maintain positive fund balances for three years, and complete feasibility studies; deadline to create such corporations is May 31, 2024.

Affiliated nonprofit building corporations must be incorporated under chapter 317A, post governance information on school websites, submit annual audits by December 31, and comply with government data practices law; facility ownership transfers to the charter school upon refinancing or mortgage/bond completion.

New provision allows charter schools to directly own school facilities if they have operated for at least seven consecutive years, have current school standing letters, maintain positive fund balances, and obtain reviews from certified public accountants, architects, and legal counsel.

Charter schools may not use state money to purchase land or buildings but may own property obtained through nonstate sources; purchases or construction contracts exceeding the review and comment threshold require commissioner approval.

Building lease facility aid eligibility changed to allow charter schools that own or lease facilities to apply; aid is limited to 90 percent of approved costs or $1,314 per pupil unit, and leases must include closure clauses relieving schools of obligations when charter contracts terminate.