ALJDEC decisions subject to certification as final
21F-RV-002-BCS · State Board for Charter Schools · 2022-02-03
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of Intent to Revoke Charter of:
Fountain Hills Charter School, Inc.
(Entity ID #4356), a non-profit corporation, operating Fountain Hills Charter School.
No. 21F-RV-002-BCS
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: January 14, 2022
APPEARANCES: Assistant Attorney General Victoria J. Bergin represented the Arizona Board of Charter Schools.
ADMINISTRATIVE LAW JUDGE: Kay A. Abramsohn
_____________________________________________________________________
This administrative hearing was held to determine whether grounds exist to revoke the charter contract held by Fountain Hills Charter School, Inc. to operate Fountain Hills Charter School.
FINDINGS OF FACT
1. Fountain Hills Charter School, Inc., a non-profit corporation, operates Fountain Hills Charter School (the “School”).
2. School is a charter school authorized to operate under the sponsorship of the Arizona Board of Charter Schools (the “Board”) pursuant to a 20-year renewal charter contract (“Charter”) effective July 1, 2012 between Fountain Hills and the Board. The Charter term was set from July 1, 2012 until June 30, 2032.
3. Under the Charter, the Board sponsors Fountain Hills to operate one school site that serves students in kindergarten through eighth grade.
4. The application approved by the Board states that the Charter Holder shall provide one hundred eighty (180) days of instruction, consistent with Arizona law. See Arizona Revised Statutes (“A.R.S.”) § 15-183.
5. A.R.S. 15-183(E)(9) requires that “the charter of a charter school shall . . . [e]nsure that it provides a minimum of one hundred eighty instruction days before June 30 of each fiscal year ...”
6. As stated in the Charter, the length of the academic year is as follows:
The Charter states that “[t]he Charter Holder shall provide instruction for no less than the number of days required by statute or as stated in the Application, whichever is greater, and meet the minimum number of hours of instruction required by statute. The Charter Holder must provide instruction as stated in this paragraph within the State of Arizona’s fiscal year that begins July 1st and ends June 30th.
7. On June 7, 2021, the Board was notified that an agreement had been reached to close the School; effectively, on June 30, 2021.
8. On June 2, 2021, R.O.I. Asset Management Solutions, LLC had been appointed as receiver of Fountain Hills Charter School, Inc. with regard to the real and personal property of Fountain Hills Charter School, Inc. The Receiver was not granted authority to terminate the Charter.
9. As of July 1, 2021, the School is closed and, thus, the School was not operating or servicing students, and therefore was not providing the requisite 180 instructional days to students.
10. Fountain Hills Charter School, Inc. has failed to comply with the terms of its Charter and with state law, which together require the School to provide a minimum of 180 instructional days before June 30, 2022.
11. On October 18, 2021, the Board unanimously approved a motion to issue a Notice of Intent to Revoke (“Notice”) the Charter between Fountain Hills Charter School, Inc. (Entity ID #4356) and the Board.
12. Pursuant to A.R.S. § 15-183(I)(Q) and Arizona Administrative Code (“A.A.C.”) R7-5-607(C), the Board forwarded the matter to the Arizona Office of Administrative Hearings (“OAH”), an independent state agency, for the conduct of an administrative hearing.
13. At hearing, the Board presented the testimony of the Board Executive Director, Ashley Berg, and presented 18 exhibits, all of which were admitted to the hearing record.
CONCLUSIONS OF LAW
1. The Board is charged with granting charter status to qualifying applicants for charter schools and exercising general supervision over the charter schools it sponsors. See A.R.S. § 15-182(E)(1) and (E)(2).
2. Charter schools are established pursuant to a contract between the Board and the charter applicant to provide a learning environment that will improve pupil achievement, provide parents and pupils with academic choices, and to serve as an alternative to traditional public schools. See A.R.S. §§ 15-101(4); 15-181; 15-183(B).
3. Charter contracts are effective for fifteen years and may be renewed for successive periods of twenty years. See A.R.S. § 15-183(I) and (J).
4. A.A.C. R7-5-607(A) allows the Board to issue a written notice of intent to revoke a charter when the Board determines that a charter holder is not in compliance with the charter.
5. A.R.S. § 15-183(I)(Q) called for the Board to establish procedures to conduct administrative hearings “on determination [by the Board] that grounds exist to revoke a charter.”
6. A.A.C. R7-5-607(C) indicates that both the Charter Holder and the Board shall appear to the administrative hearing.
7. A.A.C. R7-5-607(D) provides that the Board shall subsequently hold a public hearing to decide whether to accept, reject, or modify the administrative law judge’s decision and take action regarding the charter.
8. Based on the hearing record, the Administrative Law Judge concludes that Fountain Hills Charter School, Inc. has failed to comply with the terms of its Charter and with state law, which together require the School to provide a minimum of 180 instructional days before June 30, 2022. Therefore, the Administrative Law Judge concludes that the Board was authorized to issue its Notice and, further, as a result, the Board is authorized to revoke the Charter.
RECOMMENDED ORDER
The Board shall revoke the Charter.
Done this day, February 3, 2022.
/s/ Kay A. Abramsohn
Administrative Law Judge
Transmitted electronically to:
Ashley Berg, Executive Director
Arizona State Board for Charter Schools