{"data":{"id":"us-dc/d.c.-code-38-1802.13a","jurisdiction":"us-dc","citation":"D.C. Code § 38-1802.13a","heading":"Mandatory dissolution.","body":"(a)\nA nonprofit corporation operating a charter school shall dissolve if the charter for the school:\n(1)\nHas been revoked by the authorizing entity;\n(2)\nHas not been renewed by the authorizing entity; or\n(3)\nHas been voluntarily relinquished by the charter school.\n\n(b)\nThe distribution of assets upon dissolution required by subsection (a) of this section shall be in accordance  this section.\n\n(c)\n(1)\nExcept as provided in paragraph (2) of this subsection, the articles of incorporation or the bylaws of a nonprofit corporation operating the charter school shall provide that:\n(A)\nThe corporation shall dissolve if the charter for the charter school has been revoked, has not been renewed, or has been voluntarily relinquished; and\n(B)\nThe corporation's assets shall be distributed pursuant to a plan of distribution that is in accordance with subsection (d) of this section.\n(2)\nA nonprofit corporation with an existing charter as of March 14, 2007, shall not be required to amend its articles of incorporation or bylaws to comply with the requirements of this section until the time of its charter renewal under § 38-1802.12.\n(3)\nNothing in this subsection shall be construed as exempting the corporation from any other requirements of this section.\n\n(d)\n(1)\nFollowing completion of the closeout audit described in paragraph (3) of this subsection, the chartering authority, in consultation with the Board of Trustees, shall develop and execute a plan for:\n(A)\nLiquidating the corporation’s unencumbered assets in a timely fashion and in a manner that will achieve maximum value;\n(B)\nDischarging the corporation’s debts; and\n(C)\nDistributing the corporation's remaining assets in accordance with this section.\n(2)\nThe plan shall:\n(A)\nProvide either that:\n(i)\nAll tangible personal property purchased with District funds, including funds received pursuant to subchapter I of Chapter 29 of this title, and any assets remaining after satisfaction of the corporation's debts and the use of assets authorized in subsection (f) of this section shall be transferred or conveyed to the District of Columbia, to be controlled by and subject to the disposition instructions of the Office of the State Superintendent of Education and used solely for educational or similar purposes; or\n(ii)\nThe assets described in sub-subparagraph (i) of this subparagraph, including cash, shall be transferred to another charter school in a transaction overseen by the chartering authority if the acquiring school agrees to enroll the closing school's students at the start of the following school year; and\n(B)\nNotwithstanding subparagraph (A) of this paragraph, be in accordance with the terms of existing creditor agreements, grant agreements, and applicable laws, and creditors shall retain all rights, powers, and remedies available to them to cure default as defined in their agreements with the charter school.\n(3)\nAs soon as feasible upon notice of an event described in subsection (a) of this section, the Board of Trustees shall complete and submit to the authorizing entity a closeout audit, which shall include:\n(A)\nAn account of the present value of the charter school’s liabilities held by all of its creditors, including:\n(i)\nBanking institutions;\n(ii)\nVendors; and\n(iii)\nState pension and health benefits agencies; and\n(B)\nAn account of the present value of the charter school’s assets, including:\n(i)\nBooks;\n(ii)\nSupplies;\n(iii)\nMotor vehicles;\n(iv)\nFurnishing;\n(v)\nEquipment; and\n(vi)\nFacilities.\n(4)\nNothing in this subsection shall be construed as making the chartering authority, the District of Columbia, or a charter school that acquires a corporation's assets pursuant to this section liable for debts incurred by the corporation.\n\n(e)\nThe chartering authority, in consultation with the Board of Trustees, shall arrange for the transfer and storage of necessary student records in the possession of the charter school.\n\n(f)\nThe chartering authority may utilize assets of the charter school to provide for:\n(1)\nThe transfer and storage of student records pursuant to subsection (e) of this section; and\n(2)\nAny other actual expenses incurred by the authorizing entity as a result of the dissolution of the nonprofit organization operating the charter school.","path":["Title 38. Educational Institutions.","Chapter 18. District of Columbia School Reform (Public Charter Schools).","Subchapter II. Public Charter Schools."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/38-1802.13a","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"621982c6def8c75c9ea4fba642e70a46aa2b5a75b7ac308505d8559aa29fc4db","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-38-1802.13","next":"us-dc/d.c.-code-38-1802.13b"},"notice":"GroundRules: Original legal text. Not legal advice."}