§ 20-24-7-9 — Charter revocation or termination; funds distribution; assets

(a) This section applies if:
(1) an authorizer:
(A) revokes a charter before the end of the term for which the
charter is granted; or
(B) does not renew a charter; or
(2) a charter school otherwise terminates its charter before the end
of the term for which the charter is granted.
(b) Any funds that remain to be distributed to the charter school in
the state fiscal year in which an event described in subsection (a)
occurs shall continue to be distributed to the charter school for as long
as the charter school continues to operate in accordance with state law
and its charter.
(c) Upon the cessation of the operation of a charter school, the
following apply:
(1) Any funds that remain to be distributed to the charter school
may not be distributed to the charter school.
(2) The remaining assets of the charter school must be distributed
first to satisfy outstanding payroll obligations for employees of the
charter school, then to creditors of the charter school, then to any
outstanding debt to the common school fund.
(3) The remaining funds received from the department must be
returned to the department not more than thirty (30) days after the
charter school ceases operation due to:
(A) closure of the charter school;
(B) nonrenewal of the charter school's charter; or
(C) revocation of the charter school's charter.
(d) If the assets of the charter school are insufficient to pay all
parties to whom the charter school owes compensation under
subsection (c)(2), the priority of the distribution of assets may be
determined by a court.
(e) A charter school's articles or bylaws may not contain language
that is inconsistent with the requirements of this section.
[Pre-2005 Elementary and Secondary Education
Recodification Citation: 20-5.5-7-9.]

Legislative History

As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.109; P.L.146-2008, SEC.463; P.L.205-2013, SEC.233; P.L.250-2017, SEC.20; P.L.214-2025, SEC.59.