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 23 - ARKANSAS QUALITY CHARTER SCHOOLS ACT OF 2013 (§§ 6-23-101 — 6-23-1008) › Subchapter 1 - GENERAL PROVISIONS (§§ 6-23-101 — 6-23-109) › Section 6-23-105 - Basis and procedure for public charter school probation or charter modification, revocation, or denial of renewal

(a)
(1)
The authorizer may place a public charter school on probation or may modify, revoke, transfer, assign, or deny renewal of its charter if the authorizer determines that the persons operating the public charter school:
(A)
Committed a material violation of the charter, including failure to satisfy accountability provisions prescribed by the charter;
(B)
Failed to satisfy generally accepted accounting standards of fiscal management;
(C)
Failed to comply with this chapter or other applicable law or rule; or
(D)
Failed to meet academic or fiscal performance criteria deemed appropriate and relevant for the public charter school by the authorizer.
(2)
The authorizer may allow the voluntary assignment of a public charter school upon petition by the public charter school to the authorizer.
(3)
(A)
If the authorizer transfers or assigns the charter of a public charter school to an eligible entity, the authorizer shall not hold the applicant responsible for any activity that occurred before the transfer or assignment, which includes without limitation any disciplinary action taken by the authorizer.
(B)
After the authorizer transfers or assigns a charter to an eligible entity, the authorizer shall:
(i)
Issue a new local education agency number as required under §
25-6-107
; and
(ii)
Not issue an annual report as required under §
6-15-2101
until the eligible entity to which the charter was transferred has completed at least one (1) school year.
(b)
Any action the authorizer may take under this section shall be based on the best interests of the public charter school's students, the severity of the violation, and any previous violation the public charter school may have committed.
(c)
The authorizer shall adopt a procedure to be used for placing a public charter school on probation or modifying, revoking, transferring, assigning, or denying renewal of the public charter school's charter.
(d)
(1)
The procedure adopted under this section shall provide an opportunity for a hearing to the persons operating the public charter school.
(2)
(A)
The hearing shall be held at the Division of Elementary and Secondary Education.
(B)
The authorizer shall provide sufficient written notice of the time and location of the hearing.
(3)
There is no further right of appeal beyond the determination of the authorizer.
(4)
The Arkansas Administrative Procedure Act, §
25-15-201
et seq., shall not apply to a hearing concerning a public charter school.
(e)
(1)
(A)
Immediately upon the revocation, transfer, or assignment of an open-enrollment charter by the authorizer, an open-enrollment public charter school shall:
(i)
Provide to the division a detailed accounting of all accounts payable due from the state funds held by the open-enrollment public charter school and any additional information or records requested by the division concerning the disbursement of the state funds;
(ii)
Provide the division with a comprehensive list of all banking information and accounts in which the open-enrollment public charter school holds state or federal funds;
(iii)
Receive prior approval from the division for an expenditure over five hundred dollars ($500); and
(iv)
Work in coordination with the division to draft a charter closure plan.
(B)
(i)
Immediately upon the State Board of Education's affirmation of a revocation, assignment, or transfer, the open-enrollment public charter school shall transfer all state and federal funds held by the open-enrollment public charter school to the division.
(ii)
The division shall hold funds received under subdivision (e)(1)(B)(i) of this section in receivership in a separate fund and shall expend the funds only with prior approval of the Commissioner of Elementary and Secondary Education.
(2)
(A)
The division shall establish a procedure for a claimant to file a claim for disbursement from the state funds.
(B)
The determination of the division concerning the disbursement of the state funds is final and may not be appealed.
(3)
If funds remain in receivership for which no legitimate, documented claim has been made to the division within one (1) calendar year after the revocation, transfer, or assignment, the remaining funds shall be transferred to the:
(A)
Entity that received the public charter school under a transfer or assignment if the public charter school was transferred or assigned; or
(B)
Public School Fund in all other instances.
(4)
The state board may promulgate rules to implement this subsection.
Amended by Act 2021, No. 774,§ 10, eff. 7/28/2021.
Amended by Act 2021, No. 774,§ 9, eff. 7/28/2021.
Amended by Act 2021, No. 774,§ 8, eff. 7/28/2021.
Amended by Act 2019, No. 315,§ 308, eff. 7/24/2019.
Amended by Act 2019, No. 761,§ 3, eff. 7/24/2019.
Amended by Act 2019, No. 761,§ 2, eff. 7/24/2019.
Amended by Act 2019, No. 761,§ 1, eff. 7/24/2019.
Amended by Act 2019, No. 757,§ 54, eff. 7/24/2019.
Amended by Act 2019, No. 910,§ 1735, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 1734, eff. 7/1/2019.
Amended by Act 2017, No. 933,§ 4, eff. 8/1/2017.
Amended by Act 2013, No. 509,§ 2, eff. 8/16/2013.
Acts 1999, No. 890, § 11; 2005, No. 2005, § 3; 2007, No. 736, § 3; 2009, No. 1469, § 23.