North Carolina § 115C-218 - 100. Dissolution of a charter school.

§ 115C-218. 100. Dissolution of a charter school.

Funds Reserved for Closure Proceedings. - A charter school that has elected to participate in the North Carolina Retirement System pursuant to G.S. 135-5.3 shall, for as long as the charter school continues to participate in the North Carolina Retirement System, maintain for the purposes of ensuring payment of expenses related to closure proceedings in the event of a voluntary or involuntary dissolution of the charter school, one or more of the options set forth in this subsection. The minimum aggregate value of the options chosen by the charter school shall be fifty thousand dollars ($50,000). The State Board of Education shall not allocate any funds under G.S. 115C-218.105 to a charter school unless the school has provided documentation to the State Board that the charter school has met the requirements of this subsection. Permissible options to satisfy the requirements of this subsection include one or more of the following: An escrow account. A letter of credit. A bond. A deed of trust. In the event of a voluntary or involuntary dissolution of the charter school, the funds reserved for closure proceedings in subsection (a) of this section shall be used to pay wages owed to charter school employees, funds owed to the North Carolina Retirement System pursuant to G.S. 135-8, and funds owed to the State Health Plan, in that order. Other expenses shall be paid from the remaining balance in the funds reserved for closure proceedings in subsection (a) of this section. Distribution of Assets. - Upon dissolution of a charter school, all net assets of the charter school purchased with public funds shall be deemed the property of the local school administrative unit in which the charter school is located. History (2014-100, s. 8.34(b); 2014-101, s. 7; 2015-168, s. 4; 2015-248, s. 8(a).) Editor's Note. - This section is former G.S. 115C-238.29L, as enacted by Session Laws 2014-100, s. 8.34(b). It has been renumbered as this section at the direction of the Revisor of Statutes, pursuant to Session Laws 2014-101, s. 7. Session Laws 2014-100, s. 38.8, made this section effective July 1, 2014. Session Laws 2014-100, s. 8.34, made this section applicable to charter schools that submit applications for an initial charter or the renewal of a charter to the State Board of Education on or after August 7, 2014. Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'" Session Laws 2014-100, s. 38.7, is a severability clause. Session Laws 2014-101, s. 8, provides, in part: "Except as otherwise provided, this act is effective when it becomes law [August 6, 2014] and applies beginning with the 2014-2015 school year." Session Laws 2015-248, s. 8(b), provides: "The State Board of Education shall study and develop a proposed policy regarding circumstances in which a charter school, approved by the State Board pursuant to G.S. 115C-218.5 , should be subject to a minimum value requirement of fifty thousand dollars ($50,000) for the purposes of ensuring payment of expenses related to closure proceedings. The State Board shall also consider whether certain charter schools should be provided with a total or partial waiver of such a requirement and shall examine criteria for potentially eligible charter schools, such as the years of operation of the charter school, proven compliance with finance, governance, academic requirements of its charter, State law, and State Board policy requirements, as well as appropriate documentation to show the charter school's financial health and sustainability." Session Laws 2015-248, s. 8(c), provides: "By February 15, 2016, the State Board of Education shall report to the Joint Legislative Education Oversight Committee on the results of the study and a proposed policy as required by subsection (b) of this section, including any legislative recommendations." Session Laws 2015-248, s. 8(e) provides: "This section is effective when it becomes law [September 23, 2015]. Subsection (a) of this section applies to charter schools that submitted applications for an initial charter or the renewal of a charter to the State Board of Education on or after August 2, 2014." Effect of Amendments. - Session Laws 2015-168, s. 4, effective January 1, 2016, added subsection (a1). Session Laws 2015-248, s. 8(a), effective September 23, 2015, substituted "that has elected to participate in the North Carolina Retirement System pursuant to G.S. 135-5.3 shall, for as long as the charter school continues to participate in the North Carolina Retirement System, maintain" for "shall maintain," in the first sentence of subsection (a). For applicability, see Editor's note.