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)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 5 benefits, 0 costs, 4 mixed.

Charter students retain special education protections

Charter schools must provide special education and related services required by federal, state, and local law and their charter agreements. Each school counts as a local education agency for special education funding. That funding is limited by legislative appropriations; the law states no dollar amount.

Closing charter schools must protect student transitions

A charter school planning to close and dissolve must notify parents or guardians. It must arrange student transitions and transfer student records as needed. School assets must pay employee payroll obligations before other creditors. A court may decide how assets are divided when there is not enough to pay creditors.

Charter schools gain facility and service options

Charter schools can contract with local districts or private providers for transportation and arrange building use with public or private entities. They can partner with public or private schools for sports and activities and join the North Dakota High School Activities Association. Schools get first refusal on part or all of unused state-owned property in North Dakota. The superintendent must keep a list of available buildings. These options do not guarantee transportation, a property transfer, or a particular price or lease.

State funding supports charter school budgets

North Dakota pays charter schools for each enrolled student using the prior year's statewide average under the state funding formula. Schools must certify enrollment and receive their share of federal and state aid for eligible students or teachers, with required reporting. Schools can accept gifts, donations, and grants, but donor terms cannot conflict with law or the charter agreement. Money left at year-end stays in the school's account for future budgets.

Charter school space gets property tax exemption

A facility, or the portion used as a public charter school, is exempt from property taxes. The exemption covers only the space used as the school location. The law does not state the savings or require them to reach households.

Charter staff benefits depend on participation

Charter school employees can join state retirement and benefits programs only when their school elects participation and meets IRS requirements. Charter teachers must hold a license from the state teaching board and meet state teacher licensing requirements.

Charter boards face ethics and audit rules

Charter boards must adopt ethics and conflict rules, including family-conflict disclosures and bans on conflicted hiring or supervision. Boards are public entities under state law and must have access to their education service providers' records. Provider-paid individuals cannot serve as voting board members for schools contracting with that provider unless the superintendent approves. Schools must follow generally accepted accounting principles and obtain independent financial audits from qualified accountants every six months. They must send those audits to the superintendent.

Charter renewals require evidence and public decisions

Each five-year term requires a performance report at least 75 days before year four, with at least 30 days for school corrections or clarifications. Renewal applications are due by the final year's first instructional day and must include performance evidence, improvements, and next-term plans. The superintendent must decide within 45 days, hold a public meeting about the decision, and publish the reasons and evidence. Legal or agreement violations, weak progress, or poor financial management can lead to revocation or nonrenewal; reasons must be published. Revocation generally requires a public meeting and gives schools 30 days to respond, but imminent public safety danger permits immediate revocation.

Charter schools need approval and yearly reviews

Before opening, a charter school needs an agreement approved at a public meeting and completed within 60 days after approval. Agreements last five years from opening and set annual targets for academics, attendance, returning students, graduation readiness, finances, governance, and family engagement. Schools can delay opening one school year; longer delays need the superintendent's approval, and renewal terms are five years. One agreement can cover separate, distinct schools; amendment reviews are limited to requested changes. The superintendent evaluates schools annually and must give struggling schools a reasonable chance to fix problems, with at least 15 days to respond.

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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