CaliforniaCharter School Revolving Loan Fund.
What it does
Existing law establishes the Charter School Revolving Loan Fund, under the administration of the California School Finance Authority, and authorizes loans to be made from the fund to (1) a chartering authority for charter schools that are not a conversion of an existing school or (2) directly to a charter school that qualifies to receive specified funding and is not a conversion of an existing school. Under existing law, moneys appropriated to the fund remain available for purposes of the fund until reappropriated or reverted by the Legislature. Existing law limits the amount loaned to a qualifying charter school from the fund to $250,000 over the lifetime of the charter school and authorizes a qualifying charter school to receive money obtained from multiple loans made directly to the charter school or to the school's chartering authority from the fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed $250,000.
More detail
Existing law requires the Controller, commencing with the first fiscal year following the fiscal year the charter school receives the loan, to deduct from apportionments made to the chartering authority or charter school, as appropriate, an amount equal to the annual repayment of the amount loaned to the chartering authority or charter school for the charter school and to pay the same amount into the fund, as provided. Existing law requires moneys in the fund to be loaned at the interest rate earned by the moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school.
This bill, among other things, would increase the maximum loan amount and the maximum lifetime loan limitation by $250,000 to instead be $500,000, would revise and recast the maximum repayment period of a loan, as specified, would no longer make the charter school solely liable for repayment of a loan in the event of a default, and would revise criteria for receiving priority in the granting of loans. The bill would require moneys in the fund to instead be loaned at the interest rate described above or at a rate equal to 50% of the interest rate paid by the state on the most recent sale of state general obligation bonds, whichever is less, except that the bill would prohibit the interest rate from being set at a rate lower than 3%.
Existing law creates the Charter School Security Fund, under the administration of the California School Finance Authority, and requires moneys in the fund to be available for deposit into the Charter School Revolving Loan Fund in case of default on any loan made from the Charter School Revolving Loan Fund. Existing law requires the California School Finance Authority, by October 1 of each year, to provide detailed fund condition information for the Charter School Revolving Loan Fund and the Charter School Security Fund to the Department of Finance and the Legislative Analyst's Office.
This bill would require the above-described annual report to also be provided to specified committees of the Legislature. The bill would require the report due by October 1, 2029, to additionally include an analysis and summary of the expenditures of loan funds made by the charter school loan recipient for loans issued on or after July 1, 2026, as provided.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 13Chaptered by Secretary of State. Chapter 776, Statutes of 2025.Latest
- Oct 13Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 11 a.m.To Governor
- Sep 10Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2822.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB631 Richardson Concurrence. Result: pass.Upper
- Sep 9In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 631 Richardson Senate Third Reading By Patel. Result: pass.Lower
- Sep 9Read third time. Passed. (Ayes 78. Noes 0. Page 3077.) Ordered to the Senate.Passed Assembly
- Sep 5Ordered to third reading.Minor
- Sep 5Read third time and amended.Major
- Sep 5Assembly Rule 69(b)(1) suspended.
- Sep 2Read second time. Ordered to third reading.Minor
- Aug 29From committee: Do pass. (Ayes 15. Noes 0.) (August 29).Minor
- Vote recorded Do pass. Result: pass.Lower
- Jul 16July 16 set for first hearing. Placed on APPR. suspense file.
- Jul 7Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 3From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 2).Major
- Jul 2
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 5Referred to Com. on ED.Minor
- May 28In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading. Result: pass.Upper
- May 28Read third time. Passed. (Ayes 38. Noes 0. Page 1304.) Ordered to the Assembly.Passed Senate
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 5. Noes 1. Page 1207.) (May 23).Minor
- May 16Set for hearing May 23.
- May 12May 12 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 2Set for hearing May 12.
- Apr 30From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0. Page 961.) (April 30). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Apr 21From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.Major
- Apr 9Set for hearing April 30.
- Mar 5Referred to Com. on ED.Minor
- Feb 21From printer. May be acted upon on or after March 23.
- Feb 20Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced