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8 LONG TITLE
9 General Description:
10 This bill amends certain provisions related to school accounting methods, and the
11 approval, oversight, and closure of charter schools by an authorizer.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ creates an initial review period before a charter school receives ongoing approval
16 from an authorizer;
17 ▸ requires a charter school to use the same accounting methods as district schools;
18 ▸ requires district schools to use certain accounting methods; and
19 ▸ permits authorizers to:
20 • request financial documents from a charter school;
21 • petition a district court to appoint a receiver for a charter school on certain
22 grounds;
23 • transfer operation and control of a charter school to a high performing charter
24 school under certain circumstances; and
25 • transfer students from a closing charter school to another charter school.
26 Money Appropriated in this Bill:
27 None
28 Other Special Clauses:
29 None
30 Utah Code Sections Affected:
31 AMENDS:
32 53G-4-404, as last amended by Laws of Utah 2019, Chapters 293 and 324
33 53G-5-404, as last amended by Laws of Utah 2019, Chapters 83 and 293
34 53G-5-405, as last amended by Laws of Utah 2019, Chapters 293 and 505
35 53G-5-501, as last amended by Laws of Utah 2019, Chapter 293
36 53G-5-502, as last amended by Laws of Utah 2019, Chapter 293
37 53G-5-503, as last amended by Laws of Utah 2019, Chapter 293
38 53G-5-504, as last amended by Laws of Utah 2019, Chapter 293
39 ENACTS:
40 53G-5-307, Utah Code Annotated 1953
41
42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 53G-4-404 is amended to read:
44 53G-4-404. Annual financial report -- Audit report.
45 (1) (a) The annual financial report of each school district, containing items required by
46 law or by the state board and attested to by independent auditors, shall be prepared as required
47 by Section 51-2a-201.
48 (b) A school district shall use fund and program accounting methods and standardized
49 account codes capable of producing financial reports that comply with:
50 (i) generally accepted accounting principles;
51 (ii) financial reporting requirements established by the state board under Section
52 53E-3-501; and
53 (iii) accounting report standards established by the state auditor as described in Section
54 51-2a-301.
55 (2) If auditors are employed under Section 51-2a-201, the auditors shall complete their
56 field work in sufficient time to allow them to verify necessary audit adjustments included in the
57 annual financial report to the state superintendent.
58 (3) (a) (i) The district shall forward the annual financial report to the state
59 superintendent not later than October 1.
60 (ii) The report shall include information to enable the state superintendent to complete
61 the statement of funds required under Section 53E-1-203.
62 (b) The state board shall publish electronically a copy of the report on the Internet not
63 later than January 15.
64 (4) The completed audit report shall be delivered to the school district local school
65 board and the state superintendent not later than November 30 of each year.
66 Section 2. Section 53G-5-307 is enacted to read:
67 53G-5-307. Charter school authorization -- Initial review period.
68 (1) An authorizer shall grant a charter school approved under this title initial approval
69 for a three-year review period, beginning with the first year of the charter school's operation.
70 (2) Beginning in the first year of the initial review period, the authorizer shall comply
71 with the accountability and review procedures described in Section 53G-5-406.
72 (3) The authorizer may extend the initial review period for one year, up to two times
73 during the initial review period.
74 (4) At the end of the initial review period, the authorizer shall:
75 (a) grant the charter school ongoing approval; or
76 (b) terminate the charter agreement, subject to the requirements of Section 53G-5-503.
77 (5) The authorizer shall, under the minimum standards described in Section
78 53G-5-205, base the decision to grant ongoing approval or terminate the charter agreement on:
79 (a) the charter school's compliance with the terms of the charter agreement;
80 (b) whether the charter school is meeting academic standards in the charter school's
81 charter agreement;
82 (c) the charter school's financial viability; and
83 (d) the charter school's capacity to meet governance standards.
84 (6) A charter school that is granted initial approval under this section may not
85 participate in the Charter School Credit Enhancement Program until the authorizer grants
86 ongoing approval of the charter school's charter.
87 Section 3. Section 53G-5-404 is amended to read:
88 53G-5-404. Requirements for charter schools.
89 (1) A charter school shall be nonsectarian in its programs, admission policies,
90 employment practices, and operations.
91 (2) A charter school may not charge tuition or fees, except those fees normally charged
92 by other public schools.
93 (3) A charter school shall meet all applicable federal, state, and local health, safety, and
94 civil rights requirements.
95 (4) (a) A charter school shall:
96 (i) make the same annual reports required of other public schools under this public
97 education code, including an annual financial audit report described in Section 53G-4-404;
98 [
99 (ii) ensure that the charter school meets the data and reporting standards described in
100 Section 53E-3-501[
101 (iii) use fund and program accounting methods and standardized account codes capable
102 of producing financial reports that comply with:
103 (A) generally accepted accounting principles;
104 (B) the financial reporting requirements applicable to LEAs established by the state
105 board under Section 53E-3-501; and
106 (C) accounting report standards established by the state auditor as described in Section
107 51-2a-301.
108 (b) Before, and as a condition for opening a charter school:
109 (i) a charter school shall:
110 (A) certify to the authorizer that the charter school's accounting methods meet the
111 requirements described in Subsection (4)(a)(iii); or
112 (B) if the authorizer requires, conduct a performance demonstration to verify that the
113 charter school's accounting methods meet the requirements described in Subsection (4)(a)(iii);
114 and
115 (ii) the authorizer shall certify to the state board that the charter school's accounting
116 methods meet the requirements described in Subsection (4)(a)(iii).
117 [
118 with the Office of the State Auditor within six months of the end of the fiscal year.
119 (d) For the limited purpose of compliance with federal and state law governing use of
120 public education funds, including restricted funds, and making annual financial audit reports
121 under this section, a charter school is a government entity governed by the public education
122 code.
123 (5) (a) A charter school shall be accountable to the charter school's authorizer for
124 performance as provided in the school's charter agreement.
125 (b) To measure the performance of a charter school, an authorizer may use data
126 contained in:
127 (i) the charter school's annual financial audit report;
128 (ii) a report submitted by the charter school as required by statute; or
129 (iii) a report submitted by the charter school as required by its charter agreement.
130 (c) A charter school authorizer may not impose performance standards, except as
131 permitted by statute, that limit, infringe, or prohibit a charter school's ability to successfully
132 accomplish the purposes of charter schools as provided in Section 53G-5-104 or as otherwise
133 provided in law.
134 (6) A charter school may not advocate unlawful behavior.
135 (7) Except as provided in Section 53G-5-305, a charter school shall be organized and
136 managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, after its
137 authorization.
138 (8) A charter school shall provide adequate liability and other appropriate insurance[
139 including:
140 (a) general liability, errors and omissions, and directors and officers liability coverage
141 through completion of the closure of a charter school under Section 53G-5-504; and
142 (b) tail coverage or closeout insurance covering at least one year after closure of the
143 charter school.
144 (9) Beginning on July 1, 2014, a charter school, including a charter school that has not
145 yet opened, shall submit any lease, lease-purchase agreement, or other contract or agreement
146 relating to the charter school's facilities or financing of the charter school's facilities to the
147 school's authorizer and an attorney for review and advice [
148 [
149 (10) A charter school may not employ an educator whose license [
150 suspended or revoked by the state board under Section 53E-6-604.
151 (11) (a) Each charter school shall register and maintain the charter school's registration
152 as a limited purpose entity, in accordance with Section 67-1a-15.
153 (b) A charter school that fails to comply with Subsection (11)(a) or Section 67-1a-15 is
154 subject to enforcement by the state auditor, in accordance with Section 67-3-1.
155 (12) (a) As used in this Subsection (12), "contracting entity" means a person with
156 which a charter school contracts.
157 (b) A charter school shall provide to the charter school's authorizer any information or
158 documents requested by the authorizer, including documents held by a subsidiary of the charter
159 school or a contracting entity:
160 (i) to confirm the charter school's compliance with state or federal law governing the
161 charter school's finances or governance; or
162 (ii) to carry out the authorizer's statutory obligations, including liquidation and
163 assignment of assets, and payment of debt in accordance with state board rule, as described in
164 Section 53G-5-504.
165 (c) A charter school shall comply with a request described in Subsection (12)(b),
166 including after an authorizer recommends closure of the charter school or terminates the charter
167 school's contract.
168 (d) Documents held by a contracting entity or subsidiary of a charter school that are
169 necessary to demonstrate the charter school's compliance with state or federal law are the
170 property of the charter school.
171 (e) A charter school shall include in an agreement with a subsidiary of the charter
172 school or a contracting entity a provision that stipulates that documents held by the subsidiary
173 or a contracting entity, that are necessary to demonstrate the charter school's financial
174 compliance with federal or state law, are the property of the charter school.
175 Section 4. Section 53G-5-405 is amended to read:
176 53G-5-405. Application of statutes and rules to charter schools.
177 (1) A charter school shall operate in accordance with its charter agreement and is
178 subject to this public education code and other state laws applicable to public schools, except
179 as otherwise provided in this chapter and other related provisions.
180 (2) (a) Except as provided in Subsection (2)(b), state board rules governing the
181 following do not apply to a charter school:
182 (i) school libraries;
183 (ii) required school administrative and supervisory services; and
184 (iii) required expenditures for instructional supplies.
185 (b) A charter school shall comply with rules implementing statutes that prescribe how
186 state appropriations may be spent.
187 (3) The following provisions of this public education code, and rules adopted under
188 those provisions, do not apply to a charter school:
189 [
190 [
191 [
192 [
193 [
194
195 [
196 (a) Section 53E-4-408, requiring an independent evaluation of instructional materials;
197 (b) Section 53G-4-409, requiring the use of activity disclosure statements;
198 (c) Sections 53G-7-304 and 53G-7-306, pertaining to fiscal procedures of school
199 districts and local school boards;
200 (d) Section 53G-7-606, requiring notification of intent to dispose of textbooks;
201 (e) Section 53G-7-1202, requiring the establishment of a school community council;
202 and
203 (f) Section 53G-10-404, requiring annual presentations on adoption.
204 (4) For the purposes of Title 63G, Chapter 6a, Utah Procurement Code, a charter
205 school is considered an educational procurement unit as defined in Section 63G-6a-103.
206 (5) Each charter school shall be subject to:
207 (a) Title 52, Chapter 4, Open and Public Meetings Act; and
208 (b) Title 63G, Chapter 2, Government Records Access and Management Act.
209 (6) A charter school is exempt from Section 51-2a-201.5, requiring accounting reports
210 of certain nonprofit corporations. A charter school is subject to the requirements of Section
211 53G-5-404.
212 (7) (a) The State Charter School Board shall, in concert with the charter schools, study
213 existing state law and administrative rules for the purpose of determining from which laws and
214 rules charter schools should be exempt.
215 (b) (i) The State Charter School Board shall present recommendations for exemption to
216 the state board for consideration.
217 (ii) The state board shall consider the recommendations of the State Charter School
218 Board and respond within 60 days.
219 Section 5. Section 53G-5-501 is amended to read:
220 53G-5-501. Noncompliance -- Rulemaking.
221 (1) If a charter school is found to be out of compliance with the requirements of
222 Section 53G-5-404 or the school's charter agreement, the charter school authorizer shall notify
223 the following in writing that the charter school has a reasonable time to remedy the deficiency,
224 except as otherwise provided in Subsection 53G-5-503(4):
225 (a) the charter school governing board; and
226 (b) if the charter school is a qualifying charter school with outstanding bonds issued in
227 accordance with Part 6, Charter School Credit Enhancement Program, the Utah Charter School
228 Finance Authority.
229 (2) (a) If the charter school does not remedy the deficiency within the established
230 timeline, the authorizer may:
231 [
232 following actions:
233 [
234 [
235 [
236 charter school; or
237 (D) appoint a governing board member;
238 [
239 charter agreement[
240 (iii) transfer operation and control of the charter school to a high performing charter
241 school, as defined in Subsection 53G-5-502(1), including reconstituting the governing board to
242 effectuate the transfer.
243 (b) The authorizer may prohibit the charter school governing board from removing an
244 appointment made under Subsection (2)(a)(i), for a period of up to one year after the date of the
245 appointment.
246 (3) The costs of an interim director [
247
248 interim director [
249 (4) The authorizer shall notify the Utah Charter School Finance Authority before the
250 authorizer takes an action described in [
251 charter school is a qualifying charter school with outstanding bonds issued in accordance with
252 Part 6, Charter School Credit Enhancement Program.
253 (5) The state board shall make rules:
254 (a) specifying the timeline for remedying deficiencies under Subsection (1); and
255 (b) ensuring the compliance of a charter school with its approved charter agreement.
256 (6) (a) An authorizer may petition the district court where a charter school is located or
257 incorporated to appoint a receiver, and the district court may appoint a receiver if the authorizer
258 establishes that the charter school:
259 (i) is subject to closure under Section 53G-5-503; and
260 (ii) (A) has disposed, or there is a demonstrated risk that the charter school will
261 dispose, of the charter school's assets in violation of Subsection 53G-5-403(4); or
262 (B) cannot, or there is a demonstrated risk that the charter school will not, make
263 repayment of amounts owed to the federal government or the state.
264 (b) The court shall describe the powers and duties of the receiver in the court's
265 appointing order, and may amend the order from time to time.
266 (c) Among other duties ordered by the court, the receiver shall:
267 (i) ensure the protection of the charter school's assets;
268 (ii) preserve money owed to creditors; and
269 (iii) if requested by the authorizer, carry out charter school closure procedures
270 described in Section 53G-5-504, and state board rules, as directed by the authorizer.
271 (d) If the authorizer does not request, or the court does not appoint, a receiver:
272 (i) the authorizer may reconstitute the governing board of a charter school; or
273 (ii) if a new governing board cannot be reconstituted, the authorizer shall complete the
274 closure procedures described in Section 53G-5-504, including liquidation and assignment of
275 assets, and payment of debt in accordance with state board rule, as described in Section
276 53G-5-504.
277 (e) For a qualifying charter school with outstanding bonds issued in accordance with
278 Part 6, Charter School Credit Enhancement Program, an authorizer shall obtain the consent of
279 the Utah Charter School Finance Authority before the authorizer takes the following actions:
280 (i) petitions a district court to appoint a receiver, as described in Subsection (6)(a);
281 (ii) reconstitutes the governing board, as described in Subsection (6)(d)(i); or
282 (iii) carries out closure procedures, as described in Subsection (6)(d)(ii).
283 Section 6. Section 53G-5-502 is amended to read:
284 53G-5-502. Voluntary school improvement process.
285 (1) As used in this section[
286 (a) "[
287 [
288 [
289 agreement; and
290 [
291 (b) "Low performing charter school" means a charter school that is designated a low
292 performing school, as that term is defined in Section 53E-5-301.
293 (c) "School turnaround plan" means the same as that term is defined in Section
294 53E-5-301.
295 (2) (a) Subject to Subsection (2)(b), a charter school governing board may voluntarily
296 request the charter school's authorizer to place the charter school, including a low performing
297 charter school that has a school turnaround plan, in a school improvement process.
298 (b) A charter school governing board shall provide notice and a hearing on the charter
299 school governing board's intent to make a request under Subsection (2)(a) to parents of students
300 enrolled in the charter school.
301 (3) An authorizer may grant a charter school governing board's request to be placed in
302 a school improvement process if the charter school governing board has provided notice and a
303 hearing under Subsection (2)(b).
304 (4) An authorizer that has entered into a school improvement process with a charter
305 school governing board shall:
306 (a) enter into a contract with the charter school governing board on the terms of the
307 school improvement process;
308 (b) notify the state board that the authorizer has entered into a school improvement
309 process with the charter school governing board;
310 (c) make a report to a committee of the state board regarding the school improvement
311 process; and
312 (d) notify the Utah Charter School Finance Authority that the authorizer has entered
313 into a school improvement process with the charter school governing board if the charter
314 school is a qualifying charter school with outstanding bonds issued in accordance with Part 6,
315 Charter School Credit Enhancement Program.
316 (5) Upon notification under Subsection (4)(b), and after the report described in
317 Subsection (4)(c), the state board shall notify charter schools and the school district in which
318 the charter school is located that the charter school governing board has entered into a school
319 improvement process with the charter school's authorizer.
320 (6) A high performing charter school or the school district in which the charter school
321 is located may apply to the charter school governing board to assume operation and control of
322 the charter school that has been placed in a school improvement process.
323 (7) A charter school governing board that has entered into a school improvement
324 process shall review applications submitted under Subsection (6) and submit a proposal to the
325 charter school's authorizer to:
326 (a) terminate the school's charter, notwithstanding the requirements of Section
327 53G-5-503; and
328 (b) transfer operation and control of the charter school to:
329 (i) the school district in which the charter school is located; or
330 (ii) a high performing charter school.
331 (8) Except as provided in Subsection (9) and subject to Subsection (10), an authorizer
332 may:
333 (a) approve a charter school governing board's proposal under Subsection (7); or
334 (b) (i) deny a charter school governing board's proposal under Subsection (7); and
335 (ii) (A) terminate the school's charter agreement in accordance with Section
336 53G-5-503;
337 (B) allow the charter school governing board to submit a revised proposal; or
338 (C) take no action.
339 (9) An authorizer may not take an action under Subsection (8) for a qualifying charter
340 school with outstanding bonds issued in accordance with Part 6, Charter School Credit
341 Enhancement Program, without mutual agreement of the Utah Charter School Finance
342 Authority and the authorizer.
343 (10) (a) An authorizer that intends to transfer operation and control of a charter school
344 as described in Subsection (7)(b) shall request approval from the state board.
345 (b) (i) The state board shall consider an authorizer's request under Subsection (10)(a)
346 within 30 days of receiving the request.
347 (ii) If the state board denies an authorizer's request under Subsection (10)(a), the
348 authorizer may not transfer operation and control of the charter school as described in
349 Subsection (7)(b).
350 (iii) If the state board does not take action on an authorizer's request under Subsection
351 (10)(a) within 30 days of receiving the request, an authorizer may proceed to transfer operation
352 and control of the charter school as described in Subsection (7)(b).
353 (11) If operation and control of a low performing charter school that has a school
354 turnaround plan is transferred to a high performing charter school as described in Subsection
355 (7)(b), the low performing charter school shall complete the requirements of the school
356 turnaround plan and any other requirements imposed by the authorizer for school improvement.
357 Section 7. Section 53G-5-503 is amended to read:
358 53G-5-503. Termination of a charter agreement.
359 (1) Subject to the requirements of Subsection (3), a charter school authorizer may
360 terminate a school's charter agreement for any of the following reasons:
361 (a) failure of the charter school to meet the requirements stated in the charter
362 agreement;
363 (b) failure to meet generally accepted standards of fiscal management;
364 (c) (i) designation as a low performing school under Title 53E, Chapter 5, Part 3,
365 School Turnaround and Leadership Development; and
366 (ii) failure to improve the school's grade under the conditions described in Title 53E,
367 Chapter 5, Part 3, School Turnaround and Leadership Development;
368 (d) violation of requirements under this chapter or another law; or
369 (e) other good cause shown.
370 (2) (a) The authorizer shall notify the following of the proposed termination in writing,
371 state the grounds for the termination, and stipulate that the charter school governing board may
372 request an informal hearing before the authorizer:
373 (i) the charter school governing board; and
374 (ii) if the charter school is a qualifying charter school with outstanding bonds issued in
375 accordance with Part 6, Charter School Credit Enhancement Program, the Utah Charter School
376 Finance Authority.
377 (b) Except as provided in Subsection (2)(e), the authorizer shall conduct the hearing in
378 accordance with Title 63G, Chapter 4, Administrative Procedures Act, within 30 days after
379 receiving a written request under Subsection (2)(a).
380 (c) If the authorizer, by majority vote, approves a motion to terminate a charter school,
381 the charter school governing board may appeal the decision to the state board.
382 (d) (i) The state board shall hear an appeal of a termination made pursuant to
383 Subsection (2)(c).
384 (ii) The state board's action is final action subject to judicial review.
385 (e) (i) If the authorizer proposes to terminate the charter agreement of a qualifying
386 charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit
387 Enhancement Program, the authorizer shall conduct a hearing described in Subsection (2)(b)
388 120 days or more after notifying the following of the proposed termination:
389 (A) the charter school governing board of the qualifying charter school; and
390 (B) the Utah Charter School Finance Authority.
391 (ii) Prior to the hearing described in Subsection (2)(e)(i), the Utah Charter School
392 Finance Authority shall meet with the authorizer to determine whether the deficiency may be
393 remedied in lieu of termination of the qualifying charter school's charter agreement.
394 (3) An authorizer may not terminate the charter agreement of a qualifying charter
395 school with outstanding bonds issued in accordance with Part 6, Charter School Credit
396 Enhancement Program, without mutual agreement of the Utah Charter School Finance
397 Authority and the authorizer.
398 (4) (a) The state board shall make rules that require a charter school to report any
399 threats to the health, safety, or welfare of its students to the State Charter School Board in a
400 timely manner.
401 (b) The rules under Subsection (4)(a) shall also require the charter school report to
402 include what steps the charter school has taken to remedy the threat.
403 (5) Subject to the requirements of Subsection (3), the authorizer may terminate a
404 charter agreement immediately if good cause has been shown or if the health, safety, or welfare
405 of the students at the school is threatened.
406 (6) If a charter agreement is terminated [
407 may apply to the charter school's authorizer to assume operation of the school:
408 (a) the school district where the charter school is located;
409 (b) the charter school governing board of another charter school; [
410 (c) a private management company[
411 (d) the governing board of a nonprofit corporation.
412 (7) (a) If a charter agreement is terminated, a student who attended the school may
413 apply to and shall be enrolled in another public school under the enrollment provisions of
414 Chapter 6, Part 3, School District Residency, subject to space availability.
415 (b) Normal application deadlines shall be disregarded under Subsection (7)(a).
416 Section 8. Section 53G-5-504 is amended to read:
417 53G-5-504. Charter school closure.
418 (1) As used in this section, "receiving charter school" means a charter school that an
419 authorizer permits under Subsection (12)(a), to accept enrollment applications from students of
420 a closing charter school.
421 [
422 charter agreement in accordance with Section 53G-5-503 or the conversion of a charter school
423 to a private school, the provisions of this section apply.
424 [
425 (a) when a charter school authorizer approves a motion to terminate described in
426 Subsection 53G-5-503(2)(c);
427 (b) when the state board takes final action described in Subsection 53G-5-503(2)(d)(ii);
428 or
429 (c) when a charter school provides notice to the charter school's authorizer that the
430 charter school is relinquishing the charter school's charter.
431 [
432 school is made, the charter school shall:
433 (i) provide notice to the following, in writing, of the decision:
434 (A) if the charter school made the decision to close, the charter school's authorizer;
435 (B) the State Charter School Board;
436 (C) if the state board did not make the decision to close, the state board;
437 (D) parents of students enrolled at the charter school;
438 (E) the charter school's creditors;
439 (F) the charter school's lease holders;
440 (G) the charter school's bond issuers;
441 (H) other entities that may have a claim to the charter school's assets;
442 (I) the school district in which the charter school is located and other charter schools
443 located in that school district; and
444 (J) any other person that the charter school determines to be appropriate; and
445 (ii) post notice of the decision on the Utah Public Notice Website, created in Section
446 63F-1-701.
447 (b) The notice described in Subsection [
448 (i) the proposed date of the charter school closure;
449 (ii) the charter school's plans to help students identify and transition into a new school;
450 and
451 (iii) contact information for the charter school during the transition.
452 [
453 school is made, the closing charter school shall:
454 (a) designate a custodian for the protection of student files and school business records;
455 (b) designate a base of operation that will be maintained throughout the charter school
456 closing, including:
457 (i) an office;
458 (ii) hours of operation;
459 (iii) operational telephone service with voice messaging stating the hours of operation;
460 and
461 (iv) a designated individual to respond to questions or requests during the hours of
462 operation;
463 (c) assure that the charter school will maintain private insurance coverage [
464 management coverage for covered claims that arise before closure, throughout the transition to
465 closure and for a period following closure of the charter school as specified by the charter
466 school's authorizer;
467 (d) assure that the charter school will complete by the set deadlines for all fiscal years
468 in which funds are received or expended by the charter school a financial audit and any other
469 procedure required by state board rule;
470 (e) inventory all assets of the charter school; and
471 (f) list all creditors of the charter school and specifically identify secured creditors and
472 assets that are security interests.
473 [
474 school's compliance with Subsection [
475 [
476 liabilities and obligations of the closing charter school are paid or discharged, to the closing
477 charter school's authorizer.
478 (b) The closing charter school's authorizer shall liquidate assets at fair market value or
479 assign the assets to another public school.
480 [
481 payment of debt in accordance with state board rule.
482 [
483 (a) comply with all state and federal reporting requirements; and
484 (b) submit all documentation and complete all state and federal reports required by the
485 closing charter school's authorizer or the state board , including documents to verify the closing
486 charter school's compliance with procedural requirements and satisfaction of all financial
487 issues.
488 [
489 dissolution is complete, the authorizer shall ensure that a final audit of the charter school is
490 completed.
491 [
492 suggestions from charter school authorizers, make rules that:
493 (a) provide additional closure procedures for charter schools ; and
494 (b) establish a charter school closure process.
495 (12) (a) Upon termination of the charter school's charter agreement:
496 (i) notwithstanding provisions to the contrary in Title 16, Chapter 6a, Part 14,
497 Dissolution, the nonprofit corporation under which the charter school is organized and
498 managed may be unilaterally dissolved by the authorizer; and
499 (ii) the net assets of the charter school shall revert to the authorizer as described in
500 Subsection (7).
501 (b) The charter school and the authorizer shall mutually agree in writing on the
502 effective date and time of the dissolution described in Subsection (12)(a).
503 (c) The effective date and time of dissolution described in Subsection (12)(b) may not
504 exceed five years after the date of the termination of the charter agreement.
505 (13) Notwithstanding the provisions of Title 53G, Chapter 6, Part 5, Charter School
506 Enrollment:
507 (a) an authorizer may permit a specified number of students from a closing charter
508 school to be enrolled in another charter school, if the receiving charter school:
509 (i) (A) is authorized by the same authorizer as the closing charter school; or
510 (B) is authorized by a different authorizer and the authorizer of the receiving charter
511 school approves the increase in enrollment; and
512 (ii) agrees to accept enrollment applications from students of the closing charter
513 school;
514 (b) a receiving charter school shall give new enrollment preference to applications
515 from students of the closing charter school in the first school year in which the closing charter
516 school is not operational; and
517 (c) a receiving charter school's enrollment capacity is increased by the number of
518 students enrolled in the receiving charter school from the closing charter school under this
519 Subsection (12).
520 (14) A member of the governing board or staff of the receiving charter school that is
521 also a member of the governing board of the receiving charter school's authorizer, shall recuse
522 himself or herself from a decision regarding the enrollment of students from a closing charter
523 school as described in Subsection (12).