AN ACT TO REQUIRE A CHARTER SCHOOL TO RESERVE FUNDS FOR CONDUCTING CLOSURE PROCEEDINGS IN THE EVENT OF A VOLUNTARY OR INVOLUNTARY DISSOLUTION OF THE SCHOOL AND TO PROVIDE FOR PROCEDURES RELATED TO THE DISSOLUTION OF CHARTER SCHOOLS, INCLUDING THE RETURN OF ANY OVERPAYMENT OF FUNDS.
Repeals GS 115C-238.29F(i), Distribution of Assets, which provided that upon the dissolution of a charter school or the nonrenewal of a charter, all of the charter school's net assets purchased with public fundswere deemed to be the property of the local school administrative unit in which the charter schoolwas located. This provision now appears in new GS 115C-238.29L(e).
Enacts new GS 115C-238.29L to provide for the voluntary or involuntary dissolution of a charter school. Requires a charter school to maintain a minimum of $50,000 in an escrow account to be used to pay expenses related to a voluntary or involuntary dissolution of the charter school. Prohibits the State Board of Education (SBE) from allocating funds to a charter school under GS 115C-238.29H unless the charter school has provided the SBE with documentation that the escrow account has been established and funded for this purpose.
Directs the SBE to establish policies and procedures in accordance with this section for the voluntary dissolution of a charter school, and the involuntary dissolution of a charter school upon the revocation or nonrenewal of its charter by the SBE.
Requires a charter school to notify the SBE within 10 days of any official action taken by the board of directors to initiate voluntary dissolution of the school. Requires the notice to include the circumstances requiring the school's closure and the effective date of closure.
Additionally requires the charter school to transmit final financial information to the Department of Public Instruction (DPI) upon the effective date of closure. Provides specific details as to a charter school's responsibilities to conduct a financial audit and to refund any overpayments within 20 days following receipt of a notification of overpayment.
Makes a conforming change to GS 115C-238.29G(a1)(2).
Makes this act effective when it becomes law and applies to charter schools that submit applications for an initial charter or the renewal of a charter to the SBE on or after that date.
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