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HB 1358

establishing a commission to study transitioning all public schools to public charter schools.

2026 Regular Session Introduced by Jason Osborne

ND creates a state-level charter system; SPI authorizes charters, applies oversight, and funds charters with per-pupil state payments; charters cannot receive local tax revenue.

Vetoed by Governor Ayotte 07/02/2026
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Bill Summary · HB 1358

HB 1358 — Public Charter Schools (North Dakota) — Summary

Status snapshot
- Title: An Act to create and enact a new chapter to Title 15.1 of the North Dakota Century Code, relating to authorization of public charter schools.
- Introduced: (filed) Nov 15, 2024.
- Legislative outcome: Passed both chambers and enrolled (notification indicates HB 1358 became Act 174 during the 2025 session).
- Key sponsors/authors: Representatives Murphy, Schreiber‑Beck; Senators Dever, Schaible (per the bill text).

Purpose and intent
- Establish a statutory framework to authorize and regulate public charter schools in North Dakota, including application, approval, oversight, funding, and operational requirements. The superintendent of public instruction is designated as the primary authorizing and oversight authority.

Key provisions
- Authorizing authority and rules
- The Superintendent of Public Instruction (SPI) must adopt rules and implement the charter application, approval, renewal, revocation, and oversight processes.
- SPI reviews applications, grants initial certificates of approval, enters charter contracts with approved applicants, and may revoke charters for noncompliance.

  • Application and operator requirements

    • Applicants must demonstrate at least one of: (a) good standing with a state education agency or other authorizer as a successful charter operator in at least one state; (b) a record of successfully educating at‑risk students (including dropout recovery); (c) capacity to provide an innovative program; or (d) good standing with the ND SPI as a successful in‑state operator.
    • Charter holders may not license the charter to another operator (explicitly prohibits licensing to education management organizations).

  • Charter term, renewal, and limits

    • Initial review required before end of a three‑year term; subsequent renewals may be for terms up to five years at SPI’s discretion.
    • Numeric caps on statewide charter numbers: 12 total for the 2025–26 and 2026–27 school years; 15 total for 2027–28 and 2028–29.

  • Governance and transparency

    • Charter holders must establish a school board of 5, 7, or 9 members.
    • Boards must include at least one resident from each community where the charter school operates.
    • Charter boards are public entities under chapter 44‑04; meetings must be recorded and archived for public access.

  • Students, assessment, and special needs

    • Charter students participate in state assessments aligned to content and achievement standards.
    • High‑cost special education excess costs remain the responsibility of the state; section 15.1‑32‑18 applies where appropriate.

  • Funding and finance

    • Charter schools may not receive local tax revenue and may not charge tuition; limited fees allowed for field trips, clubs, organizations, and athletics.
    • SPI will distribute state payments; state aid is calculated as (students enrolled) × (per‑student payment amount as set in statute 15.1‑27‑04.1).
    • Charter schools are eligible for federal funds administered by the SPI.
    • The state is not required to provide transportation to charter schools.

  • Activities and athletics

    • Charter schools may join the North Dakota High School Activities Association and may apply for cooperative sponsorships.

Who is affected
- Students and families: new public school options (school choice) subject to geographic and capacity constraints.
- Charter applicants and operators: must meet approval criteria and follow oversight, governance, and funding rules.
- Local school districts: potential enrollment and funding shifts because charter students generate state per‑pupil payments to charters; districts retain jurisdiction over locally funded programs (charters may not access local tax revenue).
- State education agencies (SPI): new responsibilities for application review, authorizing, monitoring, rulemaking, and funding distribution.

Procedural/timeline notes
- The statutory caps are specified for the 2025–26 through 2028–29 school years (12 then 15 charters).
- SPI must adopt implementing rules and establish application/renewal processes prior to issuing charters.
- The bill text assigns SPI authority to set renewal lengths and revoke noncompliant charters, and requires reporting and compliance with state assessment and reporting statutes.

Potential implications (practical effects)
- Creates a centralized, state‑level charter authorization model (SPI as authorizer) rather than local‑district authorization.
- Limited initial charter slots (caps) will constrain immediate expansion; caps increase slightly after two years.
- Funding shifts: state per‑pupil payments follow students to charters; the exclusion of local tax revenue for charters may affect operational budgets and the fiscal relationship with local districts.
- State assumes responsibility for certain high‑cost special education expenses for charter students.
- The prohibition on licensing charters to third‑party EMOs and public‑entity status for boards emphasize local governance and public‑meeting transparency.

If you want, I can:
- Draft a one‑page briefing for district superintendents on immediate operational steps; or
- Produce a short fiscal‑impact checklist outlining where state vs. local costs may shift.

Compiled from official sources — confirm details with the bill’s official record.

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