Arkansas Code Title 6. Education § 6-23-105. Basis and procedure for public charter school probation or charter modification, revocation, or denial of renewal

(a) The authorizer may place a public charter school on probation or may modify, revoke, or deny renewal of its charter if the authorizer determines that the persons operating the public charter school:

(1) Committed a material violation of the charter, including failure to satisfy accountability provisions prescribed by the charter;

(2) Failed to satisfy generally accepted accounting standards of fiscal management;

(3) Failed to comply with this chapter or other applicable law or regulation;  or

(4) Failed to meet academic or fiscal performance criteria deemed appropriate and relevant for the public charter school by the authorizer.

(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, or denying renewal of the 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 Department of 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 of a charter by the authorizer, the public charter school shall:

(i) Transfer to the department all state funds held by the public charter school, which the department shall hold in receivership;  and

(ii) Provide to the department a detailed accounting of all accounts payable due from the state funds and any additional information or records requested by the department concerning the disbursement of the state funds.

(B) The department shall hold funds received under subdivision (e)(1)(A) of this section in a separate fund and shall expend the funds only with prior approval of the Commissioner of Education.

(C) If the State Board of Education reverses the revocation, the department shall return any funds remaining in receivership to the public charter school.

(2)(A) The department shall establish a procedure for a claimant to file a claim for disbursement from the state funds.

(B) The determination of the department 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 department within one (1) calendar year after the revocation, the remaining funds shall be transferred to the Public School Fund.

(4) The state board may promulgate rules to implement this subsection.

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