Delaware Code
Chapter 5. CHARTER SCHOOLS
§ 515. Oversight and revocation process.

(a) The approving authority shall be responsible for oversight of the charter schools it approves.
(b) In addition to the review required by § 514A(a) of this title, the approving authority may notify a charter school of potential violations of its charter and submit the charter to formal review to determine whether the charter school is violating the terms of its charter and whether to order remedial measures pursuant to subsection (f) of this section.
(c) The approving authority shall issue its decision within 60 working days of giving the charter school notice. An accountability committee appointed by the approving authority shall conduct the initial review pursuant to subsection (b) of this section. The accountability committee's reports to the approving authority shall address the relevant criteria set forth in §§ 512 and 516 of this title. The committee shall meet with the applicant in the course of its investigation and provide the applicant the opportunity to review and comment on the committee's initial report 15 days before it is issued to the approving authority. The committee's final report shall be provided to the applicant, the approving authority, and made available to the public.
(d) If the accountability committee's report presents probable grounds for remedial measures, the approving authority shall hold public hearings to assist in its decision whether the criteria set forth for remedial action in § 516 of this title have been satisfied, after giving the charter school 15 days' notice. The school shall be given the opportunity to respond to the accountability committee's final report at the hearing. Members of the public shall be given the opportunity to comment at the hearing.
(e) If the accountability committee's report asserts that the school has complied with its charter and the criteria set forth in § 512 of this title, the approving authority shall approve or disapprove the final report's conclusion at a public meeting after giving the charter school 15 days' notice. If the approving authority disapproves the report, it shall identify the reasons for that decision with particularity. Thereafter, the approving authority shall hold a hearing, within 30 days, to assist in its decision of the appropriate remedy pursuant to subsection (f) of this section.
(f) If the approving authority determines that the criteria for remedial action set forth in § 516 of this title have been satisfied, it may revoke the charter and manage the school directly until alternative arrangements can be made for students at the school or place the school on a probationary status subject to terms determined by the approving authority which are directly relevant to the violation or violations.
(g) If a local school district which is an approving authority decides to revoke the school's charter or place the school on probationary status, the applicant may file for arbitration in writing with the American Arbitration Association in Philadelphia within 20 days of the local board's decision stating the reasons why it believes the local board decision was in error. A copy of said filing shall be provided simultaneously with the approving authority. The parties shall select an arbitrator in accordance with the American Arbitration Association's procedure for voluntary labor disputes, provided, however, that such arbitration shall occur in this State. The arbitrator's fees and costs shall be borne equally by the parties. The arbitrator shall convene a hearing and determine whether the local board's decision was in error. The arbitrator shall have 30 days to render a decision following the close of the hearing. The arbitrator's decision shall be final and binding upon the parties.
(h) If the approving authority is the Department and it decides to revoke the school's charter or place the school on probationary status, its decision shall be final and not subject to arbitration or judicial review.
(i) Prior to any charter school closure decision, an approving authority shall have developed and shall utilize a charter school closure protocol to ensure timely notification to parents and employees, orderly transition of students and student records to new schools, and proper disposition of school funds, property, and assets in accordance with the requirements of 79 Del. Laws, c. 51 and other applicable laws. The protocol shall specify tasks, timelines, and responsible parties, including delineating the respective duties of the school and the approving authority. In the event of a charter school closure for any reason, the approving authority shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students, parents and employees, as guided by the closure protocol.
(j) In the event of a charter school closure for any reason, all cash and cash equivalents held by or available to the school shall be distributed first to satisfy outstanding payroll obligations for employees of the school, then to the remaining creditors of the school. Remaining State General Fund appropriations for that school year shall be returned to each district in an amount proportionate to the number of students received by each district. Additional remaining State General Fund appropriations shall be returned to the general revenue fund through the State Treasury. Remaining funds received from local school districts shall be returned to each of the districts in an amount proportionate to the number of students from each district. Any remaining funds and assets will be managed by the charter, as appropriate. In the event that a charter school files for bankruptcy, the distribution of all assets will be managed by the Bankruptcy Court or otherwise in accordance with bankruptcy laws. Nothing herein shall be construed in any way to impair or preempt a lien or security interest on any asset owned by a charter school or to prevent the school from paying the costs required to close or dissolve.
(k) In the event that all state and local funds due to a charter school are paid timely as required by § 509 of this title, a charter school authorized to operate in the State must by December 31 of that fiscal year maintain an available balance sufficient to pay the minimum costs necessary to provide students with the minimum annual instructional hours required by the Department of Education during the remainder of that fiscal year as reasonably projected by the charter school. Such costs include, but are not limited to, all employee compensation required to attain the minimum annual instructional hours during the remainder of that fiscal year. Such costs also include all fixed and variable nonpayroll expenditures incurred through the final month of that school year. A school's failure to maintain sufficient available funds by December 31 of its third year of operation shall be deemed a material violation of its charter.

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