Question:  What are the legal requirements for an ASB account of a closing school to follow the students to a school that is staying open?

Response: This is an unusual situation. Normally, the answer would be that the funds would have to stay within a school even if the students have moved to another school or district, as ASB funds may not be utilized by other than the current students enrolled in the school or district.  Education Code sections EC 48930 and EC 48932, along with others, establish the parameters for the use of ASB funds.  In this case, though, you have a very unusual situation in that the school has closed and there are no current students to use the funds.

The correct answer, in this very unique situation, is that the money should follow the students to the open school, where a new ASB needs to be set up. ASB funds cannot go to a parent group, so the Parent Club cannot be the receiver of the funds.  An ASB needs to formed, including a Constitution, By-Laws and Board Policy, addressing the use of student dollars consistent with the Education Code references.

Because this is such an unusual situation, we also suggest you ask this question of the district’s independent auditors.  It never hurts to "double-check" in unique situations like this.