CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2484Introduced by Assembly Member Mia BontaFebruary 17, 2022 An act to add Sections 47614.6 and 47651.5 to the Education Code, relating to charter schools. LEGISLATIVE COUNSEL'S DIGESTAB 2484, as introduced, Mia Bonta. Charter schools: school closures: apportionments: facility ownership.The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law requires the California School Finance Authority to administer the Charter School Facility Grant Program, and provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools. This bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount greater than or equal to the purchase price and cost of facility improvements to, upon closure, transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided. The bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount less than the purchase price and cost of facility improvements to, upon closure, choose to either (1) transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided, or (2) reimburse the California School Finance Authority the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program, as provided. The bill would apply this property transfer or fund reimbursement requirement to facilities held by parties related to or solely owned by the charter school or its management organization, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program.Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law authorizes a charter school to receive the state aid portion of the charter schools total local control funding formula allocation directly or through the local educational agency that either grants its charter or was designated by the state board. This bill would require those funds apportioned to a charter school that receives its funding directly and that ceases operation after its first scheduled day of instruction but before its last scheduled day of instruction to instead be reallocated on a proportional basis to the public schools that receive the pupils who transfer from the charter school, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Charter schools are publicly funded by California taxpayers. (b) When a charter school closes unexpectedly, its pupils education is disrupted and taxpayer investments in that school are lost.(c) Charter school facilities are funded by taxpayers through grants, tax-exempt bonds, lottery revenue, and state and local tax apportionments.(d) Charter school facilities are public infrastructure investments to be held in trust for the benefit of the public school system.SEC. 2. Section 47614.6 is added to the Education Code, to read:47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.SEC. 3. Section 47651.5 is added to the Education Code, to read:47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2484Introduced by Assembly Member Mia BontaFebruary 17, 2022 An act to add Sections 47614.6 and 47651.5 to the Education Code, relating to charter schools. LEGISLATIVE COUNSEL'S DIGESTAB 2484, as introduced, Mia Bonta. Charter schools: school closures: apportionments: facility ownership.The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law requires the California School Finance Authority to administer the Charter School Facility Grant Program, and provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools. This bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount greater than or equal to the purchase price and cost of facility improvements to, upon closure, transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided. The bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount less than the purchase price and cost of facility improvements to, upon closure, choose to either (1) transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided, or (2) reimburse the California School Finance Authority the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program, as provided. The bill would apply this property transfer or fund reimbursement requirement to facilities held by parties related to or solely owned by the charter school or its management organization, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program.Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law authorizes a charter school to receive the state aid portion of the charter schools total local control funding formula allocation directly or through the local educational agency that either grants its charter or was designated by the state board. This bill would require those funds apportioned to a charter school that receives its funding directly and that ceases operation after its first scheduled day of instruction but before its last scheduled day of instruction to instead be reallocated on a proportional basis to the public schools that receive the pupils who transfer from the charter school, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 2484
Introduced by Assembly Member Mia BontaFebruary 17, 2022
Introduced by Assembly Member Mia Bonta
February 17, 2022
An act to add Sections 47614.6 and 47651.5 to the Education Code, relating to charter schools.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2484, as introduced, Mia Bonta. Charter schools: school closures: apportionments: facility ownership.
The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law requires the California School Finance Authority to administer the Charter School Facility Grant Program, and provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools. This bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount greater than or equal to the purchase price and cost of facility improvements to, upon closure, transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided. The bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount less than the purchase price and cost of facility improvements to, upon closure, choose to either (1) transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided, or (2) reimburse the California School Finance Authority the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program, as provided. The bill would apply this property transfer or fund reimbursement requirement to facilities held by parties related to or solely owned by the charter school or its management organization, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program.Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law authorizes a charter school to receive the state aid portion of the charter schools total local control funding formula allocation directly or through the local educational agency that either grants its charter or was designated by the state board. This bill would require those funds apportioned to a charter school that receives its funding directly and that ceases operation after its first scheduled day of instruction but before its last scheduled day of instruction to instead be reallocated on a proportional basis to the public schools that receive the pupils who transfer from the charter school, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law requires the California School Finance Authority to administer the Charter School Facility Grant Program, and provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools.
This bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount greater than or equal to the purchase price and cost of facility improvements to, upon closure, transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided. The bill would require a charter school that received funding pursuant to the Charter School Facility Grant Program in an amount less than the purchase price and cost of facility improvements to, upon closure, choose to either (1) transfer all real or personal property interests in the facilities in fee simple absolute to the school district in which the facility is physically located, as provided, or (2) reimburse the California School Finance Authority the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program, as provided. The bill would apply this property transfer or fund reimbursement requirement to facilities held by parties related to or solely owned by the charter school or its management organization, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program.
Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law authorizes a charter school to receive the state aid portion of the charter schools total local control funding formula allocation directly or through the local educational agency that either grants its charter or was designated by the state board.
This bill would require those funds apportioned to a charter school that receives its funding directly and that ceases operation after its first scheduled day of instruction but before its last scheduled day of instruction to instead be reallocated on a proportional basis to the public schools that receive the pupils who transfer from the charter school, as provided. To the extent that this bill imposes new duties on charter schools, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Charter schools are publicly funded by California taxpayers. (b) When a charter school closes unexpectedly, its pupils education is disrupted and taxpayer investments in that school are lost.(c) Charter school facilities are funded by taxpayers through grants, tax-exempt bonds, lottery revenue, and state and local tax apportionments.(d) Charter school facilities are public infrastructure investments to be held in trust for the benefit of the public school system.SEC. 2. Section 47614.6 is added to the Education Code, to read:47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.SEC. 3. Section 47651.5 is added to the Education Code, to read:47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Charter schools are publicly funded by California taxpayers. (b) When a charter school closes unexpectedly, its pupils education is disrupted and taxpayer investments in that school are lost.(c) Charter school facilities are funded by taxpayers through grants, tax-exempt bonds, lottery revenue, and state and local tax apportionments.(d) Charter school facilities are public infrastructure investments to be held in trust for the benefit of the public school system.
SECTION 1. The Legislature finds and declares all of the following:(a) Charter schools are publicly funded by California taxpayers. (b) When a charter school closes unexpectedly, its pupils education is disrupted and taxpayer investments in that school are lost.(c) Charter school facilities are funded by taxpayers through grants, tax-exempt bonds, lottery revenue, and state and local tax apportionments.(d) Charter school facilities are public infrastructure investments to be held in trust for the benefit of the public school system.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Charter schools are publicly funded by California taxpayers.
(b) When a charter school closes unexpectedly, its pupils education is disrupted and taxpayer investments in that school are lost.
(c) Charter school facilities are funded by taxpayers through grants, tax-exempt bonds, lottery revenue, and state and local tax apportionments.
(d) Charter school facilities are public infrastructure investments to be held in trust for the benefit of the public school system.
SEC. 2. Section 47614.6 is added to the Education Code, to read:47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.
SEC. 2. Section 47614.6 is added to the Education Code, to read:
### SEC. 2.
47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.
47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.
47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur: (A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions: (i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63. (b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.
47614.6. (a) (1) Notwithstanding any other law, upon the closure of any charter school that received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5, whether voluntarily or pursuant to Section 47607, the following shall occur:
(A) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount greater than or equal to the purchase price and cost of facility improvements, all real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.
(B) If the charter school received funding pursuant to the Charter School Facility Grant Program described in Section 47614.5 in an amount less than the purchase price and cost of facility improvements, the charter school shall have the choice of one of the following two conditions:
(i) All real or personal property interests in the facilities shall be transferred fee simple absolute to the school district in which the facility is physically located.
(ii) The California School Finance Authority shall be reimbursed the sum of all the grant funding the school received pursuant to the Charter School Facility Grant Program described in Section 47614.5.
(2) Paragraph (1) shall not apply to facilities subject to the requirements of Section 17078.63.
(b) Subdivision (a) shall apply to facilities held by parties related to or solely owned by the charter school or its management organization. Related parties may be identified in a schools audited financial statements according to generally accepted accounting principles recognized in the United States.
SEC. 3. Section 47651.5 is added to the Education Code, to read:47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.
SEC. 3. Section 47651.5 is added to the Education Code, to read:
### SEC. 3.
47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.
47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.
47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.
47651.5. (a) This section shall only apply to a charter school that elects to receive its funding directly pursuant to Section 47651.
(b) Notwithstanding any other law, any unspent dollars apportioned to a charter school that ceases operations after its first scheduled day of instruction and before its last scheduled day of instruction shall be reallocated on a proportional basis to the public schools that each pupil transfers to attend.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
### SEC. 4.