North DakotaSB 22412025 Regular SessionSenateWALLET

AN ACT to create and enact a new chapter to title 15.1 of the North Dakota Century Code, relating to the authorization and administration of public charter schools; and to provide for a legislative management report.

Sponsored By: Michelle Axtman (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 11 benefits, 0 costs, 4 mixed.

Accountability and renewal rules for charters

A charter cannot open without a signed charter performance agreement approved in public. Contracts must set clear academic, operational, and financial measures with yearly targets. The Superintendent monitors schools every year, gives at least 15 days to respond to issues, and publishes a performance report at least 75 days before year four; schools get at least 30 days to reply. Charters last five years; renewal is due by the first day of instruction of the final year, and decisions come within 45 days of filing. The Superintendent can revoke or not renew for serious failures, usually after a public meeting; immediate revocation is allowed for imminent safety risks, and reasons must be published.

Clear charter application and conversion rules

To start a charter, organizers apply to the Superintendent and notify the local district board. For conversions, include a petition signed by a majority of teachers and a majority of parents or guardians. Applications must include the mission, academic plan, grades and growth, student checks, governance, plans for at‑risk students, finances and audits, and staff and student policies. If using an outside service provider, explain the choice, show its track record, detail contract terms, and keep the board independent. The Superintendent publishes rules and guidance and must decide each application within 90 days after the filing deadline, after a public interview.

Fair charter admissions for North Dakota families

Any North Dakota resident can seek a charter school seat. Schools must admit students up to program, grade, or building capacity. If more apply than seats, admission uses a public, randomized lottery. Admissions cannot consider race, religion, gender, income, disability, English level, or academic or athletic ability. Schools may prefer returning students and siblings; children of employees can get preference but must stay at or below 10% of total students.

Per-student and special education funding for charters

The state pays each charter school a per‑student amount set in state law for every enrolled student. Eligible charters also receive a proportionate share of federal and state categorical aid when they meet reporting rules. For students with disabilities, a charter acts as the local education agency for special education funding, within what the legislature funds. This helps schools support enrolled students and required services.

Rules for closing a charter school

If a charter school closes, it must notify parents and move students and their records to new schools. The school’s remaining money pays staff wages first, then other debts. If funds are not enough, a court can decide how to divide what remains. This protects students and employees during a closure.

Teacher licenses and retirement at charters

Charter teachers must hold North Dakota teaching licenses. Charter employees can join the state retirement and benefits programs only if their school elects to join and meets IRS rules. If your charter participates, you may get state retirement benefits.

State oversight fee on charter schools

The Superintendent reviews, approves, and monitors charter schools and signs their performance agreements. To fund this work, the Superintendent can charge up to 3% of each school’s annual per‑student allocation. The fee is taken from state per‑pupil funding and lowers a school’s net funds.

Charter facilities access and property tax break

Charter schools can use facilities under agreements and get the first chance to acquire unused state‑owned buildings. The Superintendent keeps a list of available sites. A building used as a charter school is exempt from property taxes under state law. These rules help schools lower facility costs.

Charters keep funds and accept donations

Any money left in a charter school’s account at year‑end stays with the school for future years. Charter boards can accept gifts, donations, and grants and use them under lawful donor conditions and the charter contract. These resources can help pay for school needs.

Student test data reporting at charters

Charter schools must collect and report student results from state tests. Reporting follows the rules in each charter performance agreement. This gives families and the state clear information on student outcomes.

Transportation and sports access for charters

Charter schools can contract with a local district or a private company to provide student transportation. Charters can also partner with other schools for sports and activities and join the state high school activities association. These steps can expand buses, teams, and programs for students.

Transparency, ethics, and audits for charter boards

Charter governing boards are public entities and must follow open‑meeting rules. State education‑department employees cannot work for or sell to a charter school. Boards must adopt conflict‑of‑interest and anti‑nepotism policies and be able to review service‑provider records. Charters must get an independent financial audit every six months and send it to the Superintendent. Within three years after the first charter is approved, the Superintendent reports program results, oversight actions, and fees to lawmakers.

Charter autonomy and local control

North Dakota now allows public charter schools under a charter agreement with state oversight. Each charter is run by a local governing board that sets budgets, curriculum, and daily rules within the charter. Charters are generally exempt from state and local education rules unless this chapter says otherwise, and they still must follow federal laws. This gives schools more flexibility and local control.

Charter schools must carry insurance

Every charter school must carry insurance for property loss and liability. This coverage protects students, staff, and the public. Schools pay the premiums, which raises operating costs.

Charters must teach mostly in person

Charter schools must deliver instruction mainly in person. They cannot make online, virtual, or home education the primary method. Families wanting a mostly online charter option are limited by this rule.

Sponsors & Cosponsors

Sponsor

  • Michelle Axtman

    Republican • Senate

Cosponsors

  • Glenn Bosch

    Republican • House

  • Pat D. Heinert

    Republican • House

  • Mike Lefor

    Republican • House

  • David Hogue

    Republican • Senate

  • Donald Schaible

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 143 • No: 43

Senate vote 4/15/2025

Second reading, passed, yeas 39 nays 7

Yes: 39 • No: 7

House vote 4/8/2025

Second reading, passed as amended, yeas 64 nays 29

Yes: 64 • No: 29

Senate vote 2/20/2025

Second reading, passed, yeas 40 nays 7

Yes: 40 • No: 7

Actions Timeline

  1. Filed with Secretary Of State 04/22

    4/24/2025House
  2. Signed by Governor 04/21

    4/23/2025Senate
  3. Sent to Governor

    4/18/2025Senate
  4. Signed by President

    4/18/2025Senate
  5. Signed by Speaker

    4/18/2025House
  6. Second reading, passed, yeas 39 nays 7

    4/15/2025Senate
  7. Concurred

    4/15/2025Senate
  8. Returned to Senate (12)

    4/9/2025Senate
  9. Second reading, passed as amended, yeas 64 nays 29

    4/8/2025House
  10. Amendment adopted, placed on calendar

    4/3/2025House
  11. Reported back amended, do pass, amendment placed on calendar 8 6 0

    4/2/2025House
  12. Committee Hearing 02:00

    3/11/2025House
  13. Introduced, first reading, referred Education Committee

    2/25/2025House
  14. Received from Senate

    2/21/2025House
  15. Second reading, passed, yeas 40 nays 7

    2/20/2025Senate
  16. Amendment adopted, placed on calendar

    2/18/2025Senate
  17. Reported back amended, do pass, amendment placed on calendar 4 0 2

    2/17/2025Senate
  18. Committee Hearing 10:00

    2/3/2025Senate
  19. Introduced, first reading, referred Education Committee

    1/17/2025Senate

Bill Text

  • Enrollment

  • FIRST ENGROSSMENT

  • FIRST ENGROSSMENT with House Amendments

  • INTRODUCED

  • Prepared by the Legislative Council staff for Representative Richter

  • Prepared by the Legislative Council staff for Senator Axtman

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