Section 1. School Closures.

(a) Requires the board of directors of a closing charter school to appoint a school closure trustee, who is approved by the authorizer, within 15 business days of the final decision to close to school.

(b) Sets requirements for who may be a trustee.  Among other things, the trustee must be a resident of the state of Minnesota.  The trustee must submit a state and federal criminal background check and must not have been found liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar misconduct. 

(c) Requires the trustee to be independent and have no material interest adverse to the school.

(d) The trustee has the responsibility to execute the closure plan for the school outlined in the school’s charter contract.  The authorizer may appoint a new trustee if the trustee is not performing the closure duties efficiently and effectively.

(e) Entitles the trustee to immunity for acts or omissions within the scope of the trustee’s appointment.

(f) Directs the Department of Administration’s small agency resource team to establish and manage a charter school closure fund. Directs the Department of Administration to report annually to the Commissioner and all charter schools on the income and expenditures of the fund. Sets the annual per capita pupil fee for charter schools to finance the fund. 

(g) Limits the authorized uses of the charter school closure fund to: costs of necessary audits; cost of liability insurance; legal costs for dissolution of the school corporation; and trustee’s fees.

(h) If a charter school board of directors file for bankruptcy upon the final decision to close the school, the bankruptcy trustee appointed by the court has the authority to execute the closure plan in the contract.

AMB/syl