ORS 338.105: Termination of charter; appeal; rules; dissolution or closure of school.

(1) During the term of a charter, the sponsor may terminate the charter on any of the following grounds: (a) Failure to meet the terms of an approved charter or this chapter. (b) Failure to meet the requirements for student performance stated in the charter. (c) Failure to correct a violation of a federal or state law that is described in ORS 338.115. (d) Failure to maintain insurance as described in the charter. (e) Failure to maintain financial stability. (f) Failure to maintain, for one or more consecutive years, a sound financial management system described in the proposal submitted under ORS 338.045 and incorporated into the written charter under ORS 338.065. (2)(a) If a charter is terminated under subsection (1) of this section, the sponsor shall notify the public charter school governing body at least 60 days prior to the proposed effective date of the termination. The notice shall state the grounds for the termination. (b) If the grounds for termination include failure to maintain financial stability or failure to maintain a sound financial management system, the sponsor and the public charter school may agree to develop a plan to correct deficiencies. Under a plan to correct deficiencies: (A) The public charter school may attempt to correct any deficiencies related to financial stability or to a sound financial management system by a date identified by the sponsor, which may not be less than 60 days from the date of the notice; (B) The proposed effective date of the termination may be extended to the date identified under subparagraph (A) of this paragraph; (C) The sponsor may withhold up to 50 percent of the moneys owed to the public charter school while the public charter school is on the plan to correct deficiencies unless the withholding would create an undue hardship, as determined pursuant to rules of the State Board of Education; and (D) The sponsor must hold in trust any moneys withheld under subparagraph (C) of this paragraph until: (i) The public charter school complies with the plan to correct deficiencies, at which time the public charter school is entitled to the moneys held in trust; or (ii) The public charter school fails to comply with the plan to correct deficiencies, at which time the charter is terminated and the public charter school forfeits any claim to the moneys held in trust. (c) A deadline to correct deficiencies under paragraph (b)(A) of this subsection may be extended by mutual agreement of the sponsor and the public charter school. (d) The public charter school governing body may request a hearing by the sponsor in relation to a termination of the charter or a plan to correct deficiencies. (3) A public charter school governing body may appeal a decision of a sponsor under this section. The appeal shall be to: (a) The State Board of Education if the sponsor is an entity described in ORS 338.005 (4)(a). The State Board of Education shall: (A) Review only: (i) The grounds for termination under this section as stated by the school district board; or (ii) A plan to correct deficiencies; and (B) Adopt by rule procedures to ensure a timely appeals process to prevent disruption of students’ education. (b) The circuit court pursuant to ORS 183.484 if the sponsor is the State Board of Education. (4)(a) Notwithstanding subsection (2) of this section, a sponsor may terminate a charter immediately and close a public charter school if the public charter school is endangering the health or safety of the students enrolled in the public charter school. (b) The public charter school governing body may request a hearing from the sponsor on the termination of the charter under this subsection. The sponsor shall hold a hearing within 10 days after receiving the request. (c) The public charter school governing body may appeal a decision of a sponsor under this subsection to the State Board of Education. The State Board of Education shall hold a hearing within 10 days after receiving the appeal request. (d) Throughout the appeals process, the public charter school shall remain closed at the discretion of the sponsor unless the State Board of Education orders the sponsor to open the public charter school and not terminate the charter. (5) Termination of a charter shall not abridge the public charter school’s legal authority to operate as a private or nonchartered public school. (6) If a charter is terminated or a public charter school is dissolved: (a) The assets of the public charter school that were purchased with public funds shall be given to the State Board of Education. The State Board of Education may disburse the assets of the public charter school to school districts or other public charter schools. (b) All student education records of the public charter school shall be transferred to the administrative office of the school district in which the public charter school was located. (7) A public charter school governing body may only terminate a charter, dissolve or close a public charter school at the end of a semester. If a charter is terminated by the public charter school governing body or a public charter school is closed or dissolved, the public charter school governing body shall notify the sponsor at least 180 days prior to the proposed effective date of the termination, closure or dissolution. [1999 c.200 §11; 2009 c.691 §12; 2011 c.94 §1; 2011 c.695 §7; 2013 c.265 §10; 2013 c.327 §3; 2018 c.72 §10]