| (VI) If the final state reimbursement amount is greater
than the total deposit made with the comptroller, the former charter
holder must make the additional deposit to the comptroller within
30 calendar days or as otherwise ordered by the commissioner.
(VII) Once the former charter holder has filed its
final audit report under TEC, §44.008, and sold the property,
and once sufficient funds are on deposit with the state comptroller's
office to pay the final reimbursement amount, the commissioner may
request the comptroller to distribute the deposit and release any
state claim on the property. Any funds on deposit with the comptroller
may be returned to the former charter holder once the state has received
the full final reimbursement amount.
(VIII) The release of claims may be made in a closing
where an independent third party is responsible for distributing the
funds necessary to supplement the escrow account with the comptroller's
office. If the property is sold before the final audit has been submitted
to TEA, TEA may elect to release its claim on the property based on
the most recent audit report.
(IX) If the charter holder fails to complete its final
financial audit under TEC, §44.008, fails to sell the property
within one year after the last day of instruction, or fails to make
an additional payment to the comptroller as required, the charter
holder shall forfeit the amount deposited with the state comptroller
and shall dispose of the property as ordered by the commissioner.
(x) For purposes of determining the fair-market value
of the real property, the charter holder shall provide an appraisal
from a certified appraiser approved by the commissioner not less than
60 calendar days after the final order of revocation, non-renewal,
surrender, or return of the charter, or as otherwise directed by the
commissioner. If the charter holder cannot provide an appraisal within
60 calendar days, the charter holder may request that the commissioner
grant an extension.
(xi) The commissioner may direct the charter holder
to contract with a specified, certified appraiser or require the charter
holder to obtain additional appraisals and may then choose which appraisal
will be used to calculate fair-market value.
(xii) Subject to the satisfaction of any security interest
or lien described by TEC, §12.128(e), if the commissioner determines
a former charter holder failed to comply with this section or TEC, §12.1282,
on request of TEA, the attorney general shall take any appropriate
legal action to compel the former charter holder to convey title to
TEA or other governmental entity authorized by TEA to maintain or
dispose of the property.
(xiii) All payments made by the charter holder to retain
real property must be made with non-state funds. Lease payments received
for state property are state property.
(xiv) A decision by the commissioner under this section
is final and may not be appealed.
(B) The charter holder may transfer the property using
one of the following methods.
(i) Transfer to TEA.
(I) Subject to the satisfaction of any security interest
or lien, the former charter holder shall transfer the property, including
a conveyance of title, to TEA no later than two weeks after the last
day of instruction.
(II) The following provisions apply to the sale of
public real property by TEA.
(-a-) After TEA receives title to real property described
by TEC, §12.128, TEA may sell the property at any price acceptable
to TEA.
(-b-) On request of TEA, the General Land Office shall
enter into a memorandum of understanding to sell real property for
TEA as required by TEC, §12.1283. The memorandum of understanding
may allow the General Land Office to recover from the sale proceeds
any cost incurred by the office or commission in the sale of the property.
(-c-) Subject to the satisfaction of any security interest
or lien described by TEC, §12.128(e), proceeds from the sale
of property under this section shall be deposited in the charter school
liquidation fund.
(ii) Transfer to a school district or open-enrollment
charter school under TEC, §12.1282.
(I) The following order of priority shall be used when
transferring to a school district or open-enrollment charter school
under this clause. No property may be transferred to a school district
or charter school if it has a financial accountability rating of lower
than satisfactory.
(-a-) A charter school with the highest or second-highest
academic accountability rating with no campus rated at the lowest
or second-lowest accountability rating and whose approved geographic
boundary encompasses the property to be transferred.
(-b-) A school district that has the highest or second-highest
academic accountability rating with no campus rated at the lowest
or second-lowest accountability rating and whose geographic boundary
includes the property to be transferred.
(-c-) A charter school with the third-highest academic
accountability rating with no campus rated at the lowest or second-lowest
accountability rating and whose approved geographic boundary encompasses
the property to be transferred.
(-d-) A school district with the third-highest academic
accountability rating with no campus rated at the lowest or second-lowest
accountability rating and whose geographic boundary encompasses the
property to be transferred.
(II) A school district or an open-enrollment charter
school may receive property under this clause only if:
(-a-) the open-enrollment charter school or school
district receiving the property:
(-1-) has not received notice of the expiration or
revocation of the contract for charter, notice of reconstitution of
its governing body, or the assignment of an accreditation rating of
Not Accredited-Revoked;
(-2-) agrees to the transfer;
(-3-) agrees to identify the property as purchased
wholly using state funds on the school's annual financial report filed
under TEC, §44.008; and
(-4-) agrees that if the property is sold within three
years, the charter holder or school district will remit the sales
proceeds back to TEA to be deposited in the charter school liquidation
fund;
(-b-) any creditor with a security interest in or lien
on the property described by TEC, §12.128(e), agrees to the transfer;
and
(-c-) the transfer of the property does not make the
open-enrollment charter school or school district receiving the property
insolvent.
(III) Property received by an open-enrollment charter
school or school district under this clause is considered state property.
TEA may require a set amount of remuneration in exchange for the property,
may accept bids, or may accept bids with a minimum bid amount established.
If TEA takes bids, TEA shall transfer the property to the highest
qualified bidder from the highest priority category established in
subclause (I) of this clause, except as provided by subsection (g)
of this section.
(2) For personal property purchased with state funds,
the commissioner shall direct the charter holder to dispose of the
property through one of the following methods.
(A) If TEA determines that the cost of disposing of
personal property described by TEC, §12.128, transferred to TEA
by an open-enrollment charter school that ceases to operate exceeds
the return of value from the sale of the property, TEA may distribute
the personal property to open-enrollment charter schools and school
districts in a manner determined by the commissioner.
(B) On request of TEA, the Texas Facilities Commission
shall enter into a memorandum of understanding to sell personal property
for TEA as required by TEC, §12.1283.
(i) A memorandum of understanding entered into as provided
by this subparagraph may allow the Texas Facilities Commission to
recover from the sale proceeds any cost incurred by the office or
commission in the sale of the property.
(ii) Subject to the satisfaction of any security interest
or lien described by TEC, §12.128(e), proceeds from the sale
of personal property under this section shall be deposited in the
charter school liquidation fund.
(3) For property leased with state funds, the commissioner
may direct the charter holder to assign the charter holder's interest
in the lease to TEA or may direct the charter holder to cancel the
lease.
(d) Maintenance of property. TEA may approve an expenditure
of remaining funds by a former charter holder for insurance or utilities
for or maintenance, repairs, or improvements to property described
by this section, and TEA may lease the property in its possession
if TEA determines that the action is reasonably necessary to dispose
of the property or preserve the property's value.
Cont'd... |
