§ 53G-5-501 — Noncompliance -- Rulemaking.

(1) (1)(a) If a charter school is found to be materially out of compliance with the requirements of Section 53G-5-404 or the school's charter agreement, the charter school authorizer shall provide written notice of the reason for the charter school's noncompliance and a reasonable time to remedy the deficiency, except as otherwise provided in Subsection 53G-5-503(4), to:
(1)(a)(i) the charter school governing board; and
(1)(a)(ii) if the charter school is a qualifying charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit Enhancement Program, the Utah Charter School Finance Authority.
(1)(b) The notice described in Subsection (1)(a) shall state that the charter school governing board may request an informal review before the charter school's authorizer to present evidence related to the deficiency.
(1)(c) The charter school authorizer shall:
(1)(c)(i) review the evidence within a reasonable time to determine if the charter school has remedied the noncompliance or if the circumstances necessitate additional time for the charter school authorizer to remedy the deficiency; and
(1)(c)(ii) if the charter school authorizer determines that circumstances necessitate additional time to remedy the noncompliance, establish a deadline to remedy the noncompliance.
(2) (2)(a) If the charter school does not remedy the material deficiency within the established timeline, the authorizer may:
(2)(a)(i) subject to the requirements of Subsection (4), take one or more of the following actions:
(2)(a)(i)(A) remove a charter school director or finance officer;
(2)(a)(i)(B) remove a charter school governing board member;
(2)(a)(i)(C) appoint an interim director, mentor, or finance officer to work with the charter school; or
(2)(a)(i)(D) appoint a governing board member;
(2)(a)(ii) subject to the requirements of Section 53G-5-503, terminate the school's charter agreement; or
(2)(a)(iii) transfer operation and control of the charter school to a high performing charter school, as defined in Section 53G-5-502, including reconstituting the governing board to effectuate the transfer.
(2)(b) The authorizer may prohibit the charter school governing board from removing an appointment made under Subsection (2)(a)(i), for a period of up to one year after the date of the appointment.
(3) The costs of an interim director, mentor, or finance officer appointed under Subsection (2)(a) shall be paid from the funds of the charter school for which the interim director, mentor, or finance officer is working, unless the authorizer chooses to pay all or some of the costs.
(4) The authorizer shall notify the Utah Charter School Finance Authority before the authorizer takes an action described in Subsection (2)(a)(i) if the charter school is a qualifying charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit Enhancement Program.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state board shall make rules:
(5)(a) specifying the timeline for remedying deficiencies under Subsection (1); and
(5)(b) ensuring compliance with the charter school's approved charter agreement.
(6) (6)(a) (6)(a)(i) An authorizer may petition a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to appoint a receiver.
(6)(a)(ii) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, the authorizer shall bring a petition described in Subsection (6)(a)(i) in the county in which a charter school is located or incorporated if the action is brought in the district court.
(6)(b) The court may appoint a receiver if the authorizer establishes that the charter school:
(6)(b)(i) is subject to closure under Section 53G-5-503; and
(6)(b)(ii) (6)(b)(ii)(A) has disposed, or there is a demonstrated risk that the charter school will dispose, of the charter school's assets in violation of Section 53G-5-403; or
(6)(b)(ii)(B) cannot, or there is a demonstrated risk that the charter school will not, make repayment of amounts owed to the federal government or the state.
(6)(c) The court shall describe the powers and duties of the receiver in the court's appointing order, and may amend the order from time to time.
(6)(d) Among other duties ordered by the court, the receiver shall:
(6)(d)(i) ensure the protection of the charter school's assets;
(6)(d)(ii) preserve money owed to creditors; and
(6)(d)(iii) if requested by the authorizer, carry out charter school closure procedures described in Section 53G-5-504, and state board rules, as directed by the authorizer.
(6)(e) If the authorizer does not request, or the court does not appoint, a receiver:
(6)(e)(i) the authorizer may reconstitute the governing board of a charter school; or
(6)(e)(ii) if a new governing board cannot be reconstituted, the authorizer shall complete the closure procedures described in Section 53G-5-504, including liquidation and assignment of assets, and payment of liabilities and obligations in accordance withSection 53G-5-504 and state board rule.
(6)(f) For a qualifying charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit Enhancement Program, an authorizer shall obtain the consent of the Utah Charter School Finance Authority before the authorizer takes the following actions:
(6)(f)(i) petitions a court to appoint a receiver, as described in Subsection (6)(a);
(6)(f)(ii) reconstitutes the governing board, as described in Subsection (6)(e)(i); or
(6)(f)(iii) carries out closure procedures, as described in Subsection (6)(e)(ii).

Legislative History

Amended by Chapter 158, 2024 General Session