(a)

1. (1) Upon the dissolution, nonrenewal, or revocation of an open-enrollment public charter, the Commissioner of Elementary and Secondary Education or his or her designee shall assert control over any funds deemed the property of the state under 6 CAR § 31-602 above.
2. (2) In the event of misuse of funds, fraud, or theft following the voluntary nonrenewal of a public charter, the commissioner or his or her designee may assert control over any funds deemed the property of the state immediately, even if the charter is still in operation until the end of the school year.

(d) In order to comply with federal and state law, the commissioner shall use such funds to satisfy the following obligations of the charter school in the order listed:

1. (1) Domestic support obligations withheld from an employee’s wages in compliance with a court order prior to the effective date of:

   1. (A) Dissolution;
   2. (B) Nonrenewal; or
   3. (C) Revocation;
2. (2) Federal tax liens imposed by the Internal Revenue Code for taxes or payroll tax withholding owed;
3. (3) Any state tax lien or certificate of indebtedness issued by the Department of Finance and Administration for taxes or payroll tax withholding owed;

4. (4) Any debt owed to the Division of Elementary and Secondary Education’s Child Nutrition Unit for:

   1. (A) Penalties; or
   2. (B) Reimbursement of overpayments;
5. (5) Any debt owed to the Division of Elementary or Secondary Education or other state agency for reimbursement of any other overpayment of federal funds;

6. (6) Unpaid contributions to the Arkansas Teacher Retirement System accrued prior to the effective date of:

   1. (A) Dissolution;
   2. (B) Nonrenewal; or
   3. (C) Revocation;

7. (7) Unpaid contributions to the Employee Benefits Division accrued prior to the effective date of:

   1. (A) Dissolution;
   2. (B) Nonrenewal; or
   3. (C) Revocation; and
8. (8) Unpaid employee wages accrued prior to the effective date of dissolution, nonrenewal, or revocation in accordance with employee contracts and the school’s policies in effect as of the beginning of the current school year.

(e)

1. (1) A claimant may file a claim for disbursement from the state funds if the claimant is owed by the public charter school.
2. (2) The claim must be made in writing to the charter school office.
3. (3) The claimant must attach an invoice that describes the nature of the debt owed.
4. (4) The claim must be for an allowable expense.
5. (5) The claim must be filed within one (1) calendar year from the date of revocation.

6. (6) Claims received by the Division of Elementary and Secondary Education under this subsection will be paid:

   1. (A) In the order received;
   2. (B) After all obligations under subsection (d) of this section have been satisfied; and
   3. (C) Only if adequate funds remain.

(g) If funds remain in receivership for which no legitimate, documented claim has been made to the Division of Elementary and Secondary Education within one (1) calendar year after the revocation, transfer, or assignment, the remaining funds shall be transferred to the:

1. (1) Entity that received the public charter school under a transfer or assignment if the public charter school was:

   1. (A) Transferred; or
   2. (B) Assigned; or
2. (2) In all other instances, the Public School Fund.