As used in this part:

1. (1) “Academic eligibility” means qualified for selection or admission based upon academic performance;
2. (2) "Adult education charter school" means a charter school for individuals at least nineteen (19) years of age that offers a high school diploma program and an industry certification program simultaneously to students;

3. (3) “Affected school district” means:

   1. (A) Each public school district from which an open-enrollment public charter school or adult education public charter school is expected to draw students for the purposes of enrollment;
   2. (B) The public school district in which the open-enrollment public charter school or adult education public charter school will be located; and
   3. (C) Each public school district that is contiguous to the public school district in which the open-enrollment or adult education public charter school will be located;

4. (4) “Application” means the proposal by a public school district or eligible entity for obtaining:

   1. (A) Conversion public charter school status; or
   2. (B) Open-enrollment public charter school status;
5. (5) “Athletic eligibility” means qualified for selection or admission based upon athletic performance or upon athletic eligibility requirements set forth by the Arkansas Activities Association;

6. (6) “Authorizer” means an entity that authorizes a charter, which may be either the:

   1. (A) Division of Elementary and Secondary Education; or

   2. (B) State Board of Education acting under:

      1. (i) Arkansas Code § 6-23-703; and
      2. (ii) 6 CAR § 31-702;

7. (7)

   1. (A) “Average daily membership” means the:

      1. (i) Total number of days of school attended; plus
      2. (ii) Total number of days absent by students in kindergarten through grade twelve (K-12) during the first three (3) quarters of each school year; divided by
      3. (iii) Number of school days actually taught in the school district during that period of time, rounded up to the nearest hundredth.
   2. (B) Open-enrollment public charter school students who are enrolled in a curriculum that fulfills the requirements established by the State Board of Education under the Rules Governing Standards for Accreditation of Arkansas Public Schools and School Districts, 6 CAR pt. 61, may be counted for average daily membership;

8. (8)

   1. (A) “Charter” or “charter contract” means a performance-based contract for an initial five-year period between the authorizer and an approved applicant for public charter school status that exempts the public charter school from:

      1. (i) State and local rules, regulations, policies, and procedures specified in the contract; and
      2. (ii) The provisions of Title 6 of the Arkansas Code specified in the contract.
   2. (B) The initial charter or charter contract may be renewed as set forth in this part.
   3. (C) For the purposes of this part, the initial five-year period of a charter begins to run on the July 1 following approval of the charter unless otherwise specified by the authorizer.
   4. (D) The period for any subsequent renewal of an initial charter shall begin to run on the July 1 following approval of the renewal;
9. (9) "Charter school office" means the Division of Elementary and Secondary Education's charter school office;
10. (10) "Commissioner" means the Commissioner of Elementary and Secondary Education;

11. (11) “Conversion public charter school” means a public school that has converted to operating under the terms of a charter approved by the:

    1. (A) Local school board; and
    2. (B) Authorizer;

12. (12)

    1. (A) “Debt” means any financial obligation incurred by a public charter school which will not be paid in full within three hundred sixty-five (365) days from the date on which the financial obligation is incurred.
    2. (B) “Debt” does not include multiyear service contracts for equipment as long as the contract length does not exceed the current charter term;
13. (13) "Division" means the Division of Elementary and Secondary Education, unless otherwise specified;

14. (14)

    1. (A) “Eligible entity” means:

       1. (i) A public institution of higher education;
       2. (ii) A private nonsectarian institution of higher education;
       3. (iii) A governmental entity; or

       4. (iv) An organization that:

          1. (a) (a) Is nonsectarian in its:
15. (1) (1) Program;
16. (2) (2) Admissions policies;
17. (3) (3) Employment practices; and

18. (4) (4) Operations; and

    1. (b) (b) Has applied for tax-exempt status under § 501(c)(3) of the Internal Revenue Code of 1986.
    2. (B) The eligible entity must obtain status as a tax-exempt organization under § 501(c)(3) of the Internal Revenue Code of 1986 prior to the first day of its operation with students;

19. (15) “Founding member” means any individual who is either:

    1. (A) A member or an employee of the eligible entity applying for the initial charter for an open-enrollment public charter school; or
    2. (B) A member of the initial governing nonadvisory board of the open-enrollment public charter school;

20. (16)

    1. (A) “Letter of intent” means a written notice submitted to the charter school office that a public school district or an eligible entity intends to file a charter school application.
    2. (B) The letter of intent shall be submitted by the established deadline on forms provided by the Division of Elementary and Secondary Education;

21. (17) “License” means the authority granted by the authorizer to an already existing open-enrollment or adult education public charter sponsoring entity for the purpose of establishing another open-enrollment or adult education public charter school or schools, provided the applicant for a charter license or licenses meets the following minimum conditions:

    1. (A) Maintains an existing open-enrollment or adult education public charter school charter from the authorizer; and
    2. (B) Meets the requirements of 6 CAR § 31-405 or 6 CAR § 31-803;

22. (18)

    1. (A) “Local school board” means a board of directors exercising the control and management of a public school district.
    2. (B) For the purposes of this part, “local school board” also refers to the board of directors of a school district where a public charter school will be physically located;

23. (19)

    1. (A) “Net assets” refers to the status of particular items upon the occurrence of the dissolution, nonrenewal, or revocation of the charter, with the purpose being to identify publicly funded unencumbered assets as property of the state at that point.
    2. (B) Specifically, “net assets” refer to any unencumbered asset for which public funds were spent;

24. (20)

    1. (A) “Open-enrollment public charter school” means a public school that:

       1. (i) Is operating under the terms of a charter granted by the authorizer on the application of an eligible entity;
       2. (ii) May draw its students from any public school district in this state; and
       3. (iii) Is a local educational agency under 20 U.S.C. § 7801;
    2. (B) “Open-enrollment public charter school” also possesses the same meaning as given the term “charter school” in 20 U.S.C. § 7221i;
25. (21) “Parent” means any parent, legal guardian, or other person having custody or charge of a school-age child;

26. (22) “Public charter school” means:

    1. (A) A conversion public charter school; or
    2. (B) An open-enrollment public charter school;
27. (23) “Public school” means a school that is part of a public school district under the control and management of a local school board;

28. (24)

    1. (A) “Sectarian” means of or relating to a particular religious sect.
    2. (B) Source. Black’s Law Dictionary, 8th Ed., 2004; and

29. (25) “Short-term line of credit” means any financial obligation or obligations incurred by a public charter school as the result of an agreement by a lender or potential creditor to advance funds of ten thousand dollars ($10,000) or more in the form of a loan or combination of loans that:

    1. (A) Are payable in full in less than three hundred sixty-five (365) days from the date on which the financial obligation is incurred; or
    2. (B) Do not define a date certain at which the loan is payable in full.

Codification Notes: 501(c)(3) of the Internal Revenue Code of 1986 is codified at 26 U.S.C. § 501(c)(3).