(a) Upon execution of a lease, whether voluntarily or by order of the Commission for Arkansas Public School Academic Facilities and Transportation, the public charter school shall be responsible for all direct expenses related to the public school facility or real estate, including without limitation:

1. (1) Utilities;
2. (2) Insurance;
3. (3) Maintenance;
4. (4) Repairs; and
5. (5) Renovation.

(b)

1. (1) The school district shall remain responsible for any bonded debt incurred or mortgage liens that attached to the public school facility or other real property prior to a sale or lease.
2. (2) Note. If the public school facility at issue was financed with tax-exempt debt and that tax-exempt debt remains allocated to the public school facility as of the date of sale or lease of the property, the school district should be mindful of Internal Revenue Code restrictions/processes concerning the sale or lease of the property.

(c) The public charter school shall take no actions that have a materially negative impact on:

1. (1) Any bond rights attached to the public school facility or other real property; or
2. (2) Any tax-exempt financing related to the public school facility or other real property.

(e) The terms of a lease executed under this section shall provide that the lease shall be void, cancelled, and of no effect if:

1. (1) The public charter school fails to use the public school facility or other real property for direct student instruction or administrative purposes within two (2) years of the effective date of the lease;
2. (2) The public charter school closes, has its charter revoked, or has its charter application denied by the charter authorizer; or
3. (3) The public charter school initially uses the public school facility or other real property, but then leaves the public school facility or other real property unused for more than one hundred eighty (180) days.

(f) A standard lease form, which may be used to guide or assist in negotiations but which is not intended to provide specific requirements or responsibilities of the parties:

1. (1) Is attached to this part as Appendix “A”; and
2. (2) Will be placed on the Division of Public School Academic Facilities and Transportation’s website in an editable format.

(g) For the duration of a lease of a public school facility to a public charter school, the facility shall be:

1. (1) Exempt from the provisions of Arkansas Code §§ 6-21-801 to 814, and the commission’s rules governing those sections, to the same extent that other public charter school facilities are exempt; and
2. (2) Excluded from gross square footage calculations for the school district’s campus value, program of requirements, and suitability analysis under the Academic Facilities Partnership Program.