Failure to remit payment

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  1. (a) If an open-enrollment public charter school fails to remit payment for an outstanding loan under the Open-Enrollment Public Charter School Facilities Loan Fund, upon certification of the amount of delinquent funds by the Division of Public School Academic Facilities and Transportation, the amount of delinquent funds including penalties and interest may be deducted from the operating funds designated to the open-enrollment public charter school through the Division of Elementary and Secondary Education and remitted directly by the Division of Elementary and Secondary Education to the Open-Enrollment Public Charter School Facilities Loan Fund if requested by the Division of Public School Academic Facilities and Transportation.

  2. (b) The operating funds from which delinquent funds may be deducted for an open-enrollment public charter school are limited to:

    1. (1) State funding distributed under § 6-20-2305, including without limitation state foundation funding and state categorical funding;

    2. (2) Federal funding to the extent allowed under federal law; and

    3. (3) The net assets of an open-enrollment public charter school deemed property of the state upon revocation or nonrenewal of the charter.

  3. (c) The state shall hold a preferred security interest in the amount of the outstanding loan.


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