Site-governed school requirements modified.

A bill for an act

relating to education; modifying requirements for site-governed schools; amending

Minnesota Statutes 2024, section 123B.045.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 123B.045, is amended to read:

123B.045 DISTRICT-CREATED SITE-GOVERNED SCHOOLS.

Subdivision 1.

Authority.

(a) A school board may approve site-governed schools under

this section
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by requesting site-governing school proposals. The request for proposals must

include what types of schools or education innovations the board intends to create.
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after

reviewing a proposal that includes a site-governed school's agreement and a proposed

memorandum of understanding, if applicable. A proposal is approved when the board enters

into a site-governed school agreement under paragraph (c) and a memorandum of

understanding under paragraph (b), if applicable.
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A current site may submit a proposal
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to

create a different model for the site
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if 60 percent or more of the teachers at the site support

the proposal. A group of licensed district professionals from one or multiple district sites

may submit a proposal. The group submitting the proposal must include parents or other

community members in the development of the proposal.
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A proposal may request approval

for a model of a school not included in the request for proposal of the board.
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Within 60 days

of receiving a proposal, the school board must determine whether to approve, deny, or return

the proposal to the site for further information or development.
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(b) The school board and the applicable bargaining unit representing district employees

must enter into memoranda of understanding specifying how applicable sections of current

contracts will enable the provisions of subdivision 2, paragraph (a), clauses (7) and (8), to

be implemented
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, if applicable
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.

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(c) Within 60 days of receipt of the application, the school board shall determine whether

to approve, deny, or return the application to the applicants for further information or

development.

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(d) Upon approval of the proposal,
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(c)
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An agreement between the district and
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the
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one

or more
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site
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council shall be developed identifying the powers and duties delegated to the

site and outlining the details of the proposal including the provisions of subdivisions 2, 3,

and 5.
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councils must:
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(1) identify the autonomies and responsibilities delegated to the school site, in addition

to the autonomies and responsibilities assigned to the school site under subdivision 2;

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(2) identify the specific services provided by the district for the site under subdivision

3, and the district's expectations in supporting the school site;

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(3) identify any administrative fees due to the district under subdivision 3;

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(4) define clear performance expectations for the school site consistent with subdivision

5; and

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(5) provide clear reporting and dispute resolution mechanisms.

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(d) A community nonprofit organization supporting an effective partnership between

the district and site council may be a party to the agreement.

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(e)
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Any powers or duties not specifically delegated to the school site in the agreement

remains with the school board.

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(f) An initial agreement between the district and site council must have a term of three

years. If the school site substantially meets specified performance expectations, the agreement

is automatically renewed for five years.

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(g) The parties to a site-governed school agreement have all available remedies at law

and equity in addition to the rights and remedies contained in this section.

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Subd. 2.

Roles and responsibilities of site-governed schools.

(a) Site-governed schools

approved by the school board have the following autonomy and responsibilities at the

discretion of the site:

(1) to create the site-governing council of the school. The council shall include teachers,

administrators
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including the principal
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, parents, students if appropriate, community members,

and other representatives of the community as determined by the site-governing council.

Teachers may comprise a majority of the site-governing council at the option of a majority

of the teachers at the site. The number of members on the site-governing council
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, the manner

in which members are selected,
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and the composition shall be included in the
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proposal
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agreement
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approved by the school board;

(2) to determine the leadership model for the site including: selecting a principal,

operating as a teacher professional practices model with school leadership functions

performed by one or more teachers or administrators at the school or other model determined

by the site;

(3) to determine the budget for the site and the allocation and expenditure of the revenue

based on provisions of subdivision 3;

(4) to determine the learning model and organization of the school consistent with the

application approved by the school board;

(5) to select and develop its curriculum and determine formative and summative

assessment practices;

(6) to set policies for the site including student promotion, attendance, discipline,

graduation requirements which may exceed the school board standards, and other such rules

as approved by the school board consistent with the mission, goals, and learning program

of the school site;

(7) to determine the length of the school day and year and employee work rules covered

by the terms and conditions of the employment contract;

(8) to select teachers and other staff consistent with current law and collective bargaining

agreements and memoranda of understanding provided for in subdivision 1, paragraph (b).
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At least 70 percent of the teachers must be selected by the site prior to final approval of the

agreement. Prior to requesting the district to employ staff not currently employed by the

district, the site must first select current district staff including those on requested and

unrequested leave as provided for in
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All school staff must be selected by mutual consent

of both the site-governing council and the staff member. The selection process for staff on

requested and unrequested leave of absence under
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sections
122A.40
and
122A.41
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applies

to site-governed schools to the same extent as other schools in the district
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. The school board

shall be the legal employer of all staff at the site and all teachers and other staff members

of the applicable bargaining units. Teachers and other employees may be required to sign

an individual work agreement with the site-governing council committing themselves to

the mission and learning program of the school and the requirements of the site-governing

council; and

(9) to fulfill other provisions as agreed to by the district and site-governing council.

(b) If a self-governed school created under this section is supervised by a principal, that

principal must be licensed, consistent with section
123B.147, subdivision 2
.

Subd. 2a.

Teacher-governed schools; grants.

(a) Consistent with subdivision 1

authorizing a school board to agree to assign certain autonomies and responsibilities to a

school site, and subject to a memorandum of understanding between the school board and

the exclusive representative of the teachers, a grant program is established to encourage

licensed teachers employed at a school site to explore and develop organizational models

for teaching and learning; provide curriculum and corresponding formative, interim, and

summative assessments; measure and evaluate teacher performance; assign teaching positions

and restructure instructional work; provide professional development to support teachers

restructuring their work; allocate revenue; assert autonomy and leadership; and pursue other

such policies, strategies, and activities for creating teacher-governed schools.

(b) The commissioner, after receiving documentation of the approved agreement between

the parties under subdivision 1, paragraph
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(d)
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(c)
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, shall award grants on a first-come,

first-served basis until appropriated funds are expended according to this paragraph:

(1) a planning grant of up to $50,000 during the first year of the parties' agreement; and

(2) an implementation grant of up to $100,000 during each of the next two years of the

parties' agreement.

(c) A grant recipient that terminates an agreement before the end of a school year must

return a pro rata portion of the grant to the commissioner, the amount of which the

commissioner must determine based upon the number of school days remaining in the school

year after the agreement is terminated. Grant recipients are encouraged to seek matching

funds or in-kind contributions from nonstate sources to supplement the grant awards.

(d) A school district receiving a grant must transmit to the commissioner in an electronic

format and post on its website by the end of the school year readily accessible information

about recommended best practices based on its experience and progress under this section.

The commissioner must make information about these recommended best practices readily

available to interested districts and schools throughout Minnesota.

Subd. 3.

Revenue to self-governed school.

(a) The revenue that shall be allocated by

the site includes the general education revenue generated by the students at the site from

state, local, and private sources, referendum revenue, federal revenue from the Elementary

and Secondary Education Act, Individuals with Disabilities Education Act, Carl Perkins

Act, and other federal programs
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as agreed to by
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in accordance with the agreement between
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the school board and site council.

(b) The district may retain an administrative fee for managing the federal programs,

private revenues, and general administrative functions including school board, superintendent,

district legal counsel, finance, accountability and self-governed school contract oversight,

facilities maintenance, districtwide special education programs, and other such services
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as

agreed to by
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in accordance with the agreement between
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the site
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council
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and school board.
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The administrative fee shall be included in the agreement.
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(c) As part of the agreement, the district may provide specific services for the site and

may specify the amount to be paid for each service and retain the revenues for that amount.

The formula or procedures for determining the amount of revenue to be allocated to the site

each year shall be consistent with this subdivision and incorporated in the site budget

annually following a timeline and process that is included in the agreement with the school

board. The site is responsible for allocating revenue for all staff at the site and for the other

provisions of the agreement with the district board.

(d) All unspent revenue shall be carried over to following years for the sole use of the

site.

Subd. 4.

Exemption from statutes and rules.

Except as outlined in this section,

site-governed schools established under this section are exempt from and subject to the

same laws and rules as are chartered schools under chapter
124E
, except that the schools

shall be subject to chapters 13, 13D, and 179A, and sections
122A.40
,
122A.41
,
122A.50
,

and
122A.51
.

Subd. 5.

Performance standards.

(a) The school board and the
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site
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site-governing
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council shall include in the agreement performance standards and expectations that shall

include at least the following:

(1) student achievement targets on multiple indicators including either a growth model

or value-added growth model;

(2) the criteria and process to be followed if it is determined that the site failed to comply

with district oversight and accountability requirements as outlined in the agreement; and

(3) other performance provisions as agreed to.

(b) All agreements shall be filed with the commissioner.
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The initial agreement shall be

for up to three years, shall be reviewed annually, and may be renewed by the district board

for additional terms of up to five years based on the performance of the school.
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Subd. 6.

Board termination of self-governed school authority.

(a) The district board

may terminate the agreement for
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only
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one or more of the following reasons:

(1) failure of the site to meet the provisions specified in the agreement in subdivision 5
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following at least two full school years of the school operating under the agreement
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;

(2) violations of law; or

(3)
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other good cause shown
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imminent risk of irreparable harm to students at the school
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.

(b) Site-governed schools that are terminated or not renewed
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for reasons other than cause
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may request to convert to charter school status as provided for in chapter
124E
and, if

chartered by the board, shall become the owner of all materials, supplies, and equipment

purchased during the period the school was a site-governed school.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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