Arkansas Code of 1987 (2023) › Title 6 - EDUCATION (§§ 6-1-101 — 6-87-104) › Subtitle 2 - ELEMENTARY AND SECONDARY EDUCATION GENERALLY (§§ 6-10-101 — 6-28-206) › Chapter 21 - SCHOOL PROPERTY AND SUPPLIES (§§ 6-21-101 — 6-21-817) › Subchapter 8 - ARKANSAS PUBLIC SCHOOL ACADEMIC FACILITIES PROGRAM ACT (§§ 6-21-801 — 6-21-817) › Section 6-21-816 - Sale or lease of public school facilities

(a)
(1)
Except as otherwise provided in this section, if a school district determines that any public school facility or other real property is no longer needed for school purposes or is unused or underutilized, the school district may sell or lease the public school facility in accordance with §§
6-13-103
and
6-13-620
and this subchapter.
(2)
(A)
Money derived from the sale or lease of property under this section shall be placed in the appropriate school fund established under applicable law, as determined by the school district.
(B)
Money derived from the sale or lease may be used for any purpose allowed by law, including without limitation redemption of bonds related to the financing of the public school facility sold or leased.
(3)
A school district may not make a covenant that prohibits the sale or lease of a public school facility or other real property to an open-enrollment public charter school that is located within the geographic boundary of the school district.
(b)
(1)
(A)
If a school district decides to sell, lease, or otherwise transfer ownership of an academic facility, an open-enrollment public charter school located within the school district's boundaries shall have a right of first refusal to purchase or lease the facility for fair market value.
(B)
If the school district ceases to use a public school facility as an academic facility, the right of first refusal shall continue for two (2) years after the date the public school facility or other real property was last used as an academic facility.
(C)
If there is more than one (1) open-enrollment public charter school located within the boundaries of the school district, the right of first refusal shall be available to the open-enrollment public charter school according to a priority list determined by the charter authorizer following a review of the comparative status and educational needs of the open-enrollment public charter schools.
(2)
(A)
If an open-enrollment public charter school decides to sell or lease a public school facility or other real property purchased by the public charter school under this section or under §
6-21-815
, and the sale or lease is to a third party that is not a public charter school, the school district in which the public school facility or other real property is located shall have a right of first refusal to purchase or lease the public school facility or other real property for fair market value, subject to any mortgage or lien attached to the public school facility or other real property.
(B)
The school district may waive its right of first refusal under subdivision (b)(2)(A) of this section if the public school facility or other real property or its revenues are to be pledged by the public charter school as security for debt to fund the purchase or renovation of the public school facility or other real property.
(3)
Subject to the priority list under subdivision (b)(1)(C) of this section, nothing in this subchapter shall be construed to delay or limit the authority of a school district to sell, lease, or otherwise transfer a public school facility or other real property to a public charter school on terms agreed to by the school district and public charter school.
(c)
If a public school facility or other real property has been identified by the Division of Public School Academic Facilities and Transportation as an unused or underutilized public school facility, the school district may sell or lease the unused or underutilized public school facility to a third party, other than an open-enrollment public charter school, no earlier than the later of:
(1)
Two (2) years after the date the public school facility or other real property is identified by the division as an unused or underutilized public school facility, so long as no public charter school has claimed a right of access under §
6-21-815
or a right of first refusal under this section; or
(2)
If the unused or underutilized public school facility has been designated in the school district's facilities master plan to be reused, renovated, or demolished as part of a specific committed project or planned new construction project, three (3) years from the date the public school facility or other real property is identified by the division as an unused or underutilized public school facility.
(d)
(1)
A school district may petition the division for a waiver of subsection (c) of this section as it applies to an unused or underutilized public school facility within the school district.
(2)
The petition shall include a statement that the school district believes that a public charter school would not be interested in leasing or purchasing the unused or underutilized public school facility.
(e)
(1)
If the division receives a petition under subsection (d) of this section, the division, within five (5) days after receiving the petition, shall notify each eligible entity granted a charter under the Arkansas Quality Charter Schools Act of 2013, §
6-23-101
et seq., and each statewide organization representing charter schools in this state of the petition by:
(A)
Posting the petition on the division's website; and
(B)
Sending a copy of the petition to each eligible entity and statewide organization representing charter schools by email.
(2)
Not later than thirty (30) days after the division provides the notification required under subdivision (e)(1) of this section, an eligible entity or a statewide organization representing charter schools may submit to the division an objection in writing to the petition.
(3)
An objection shall include:
(A)
The name of the open-enrollment public charter school that is interested in leasing or purchasing the unused or underutilized public school facility; and
(B)
A time frame, which may not exceed one (1) year from the date of the objection, in which the open-enrollment public charter school intends to begin providing classroom instruction in the unused or underutilized public school facility.
(f)
(1)
If the division receives an objection that meets the requirements of subdivision (e)(3) of this section, the division shall deny the petition.
(2)
(A)
If the division does not receive an objection that meets the requirements of subdivision (e)(3) of this section, the division shall grant the petition.
(B)
A school district that receives a waiver under this section may sell, lease, or otherwise dispose of the unused or underutilized public school facility in accordance with §§
6-13-103
and
6-13-620
and this subchapter.
(g)
(1)
A decision by the division under this section may be appealed to the Commission for Arkansas Public School Academic Facilities and Transportation.
(2)
All time frames under this section, including subsection (c) and subdivision (e)(3)(B) of this section, shall be tolled during the pendency of an appeal.
(h)
(1)
The division may classify a school district that fails to comply with this section as being in academic facilities distress under §
6-21-811
.
(2)
The authorizer may take action under §
6-23-105
on the charter of a public charter school that fails to comply with this section.
(i)
The commission may promulgate rules to implement this section.
Amended by Act 2021, No. 126,§ 7, eff. 7/28/2021.
Added by Act 2017, No. 542,§ 3, eff. 8/1/2017.