53A-1a-510.5 - Charter school closure.
53A-1a-510.5. Charter school closure.
(1) If a charter school is closed for any reason, including the termination of a charter inaccordance with Section 53A-1a-510 or the conversion of a charter school to a private school, theprovisions of this section apply.
(2) (a) As soon as possible after the decision is made to close a charter school,notification of the decision, in writing, shall be provided by the charter school to:
(i) its chartering entity;
(ii) the State Charter School Board;
(iii) the State Board of Education;
(iv) parents of its students;
(v) its creditors; and
(vi) the school district in which the charter school is located and other charter schoolslocated in that school district.
(b) The notification under Subsection (2)(a) shall include:
(i) the proposed date of school closure;
(ii) the school's plans to help students identify and transition into a new school; and
(iii) contact information for the charter school during the transition.
(3) A closing charter school shall:
(a) present a school closure plan to its chartering entity as soon as possible after thedecision to close is made;
(b) designate a custodian for the protection of student files and school business records;
(c) maintain a base of operation throughout the charter school closing, including:
(i) an office;
(ii) hours of operation; and
(iii) operational telephone service with voice messaging stating the hours of operation;
(d) maintain insurance coverage and risk management coverage throughout the transitionto closure and for a period following closure of the charter school as specified by the charteringentity;
(e) complete a financial audit immediately after the decision to close is made;
(f) inventory all assets of the charter school;
(g) list all creditors of the charter school and specifically identify secured creditors andassets that are security interests; and
(h) protect all school assets against theft, misappropriation, and deterioration.
(4) (a) Any assets held subject to written conditions or limitations in accordance withSection 53A-1a-517 shall be disposed of in accordance with those conditions or limitations.
(b) All liabilities and obligations of the closing charter school shall be paid anddischarged or adequate provisions shall be made to discharge the liabilities and obligations to theextent of the closing school's assets.
(c) (i) The remaining assets shall be returned to the closing charter school's charteringentity.
(ii) The chartering entity may liquidate assets at fair market value or assign the assets toanother public school.
(5) To the extent possible, all leases, service agreements, and other contracts notnecessary for the transition of the closing charter school should be terminated.
(6) The closing charter school shall submit all documentation required by its chartering
entity, including documents to verify its compliance with procedural requirements as well assatisfaction of all financial issues.
(7) When the closing charter school's financial affairs are closed out and dissolution iscomplete, the chartering entity shall ensure that a final audit of the charter school is completed.
(8) The State Board of Education may make rules that provide additional closurerequirements upon charter schools or that specify elements of charter school closure plans.
Enacted by Chapter 344, 2007 General Session