Amended IN Senate April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 631Introduced by Senator RichardsonFebruary 20, 2025 An act to amend Sections 41365 and 41366.5 of the Education Code, relating to charter schools, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 631, as amended, Richardson. Charter School Revolving Loan Fund.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 schools 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. 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 charter 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 instead would authorize loans from the fund to be made indirectly to a chartering authority for one or more charter schools, would restrict loans that are made directly to a charter school to those charter schools formed as a nonprofit corporation, and would additionally authorize loans to be made indirectly to an entity managing a charter school, as provided. would remove the above-described limitation on loans to be made only for, or to, charter schools that are not a conversion of an existing school. The 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 increase revise and recast the maximum repayment period of a loan from 5 years to instead be 15 years, 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 interest rate is prohibited from being set at a rate lower than 3%. By expanding the eligibility for and purposes of previously appropriated funds, the bill would make an appropriation.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 41365 of the Education Code is amended to read:41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.SEC. 2. Section 41366.5 of the Education Code is amended to read:41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.SECTION 1.Section 41365 of the Education Code is amended to read:41365.(a)The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b)Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c)Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund indirectly to a chartering authority for one or more charter schools, indirectly to an entity managing a charter school, or directly to a charter school that is formed as a nonprofit corporation and qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4. Money loaned to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this subdivision shall not exceed five hundred thousand dollars ($500,000) over the lifetime of the charter school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school that is formed as a nonprofit corporation, the entity managing the charter school, or the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed five hundred thousand dollars ($500,000).(d)The California School Finance Authority may consider all of the following when making a determination to approve a charter schools loan application:(1)For a charter school that is formed as a nonprofit corporation or for an entity managing a charter school, the soundness of the financial business plans of the charter school.(2)Availability of the charter school of other sources of funding.(3)Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4)The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5)Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6)The financial needs of the charter school.(e)Priority for loans from the Charter School Revolving Loan Fund shall be given in the following order:(1)To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(2)To new charter schools that are not a conversion of an existing school for startup costs.(3)All other charter schools.(f)Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall deduct from apportionments made to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation, as appropriate, an amount equal to the annual repayment of the amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation for the charter school under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed 15 years for any loan.(g)The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.(h)For purposes of this section, all of the following definitions apply:(1)Charter school means a school that was established and is operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2)Entity managing a charter school has the same meaning as defined in Section 47604.1.SEC. 2.Section 41366.5 of the Education Code is amended to read:41366.5.(a)Moneys in the Charter School Revolving Loan Fund shall be loaned at whichever interest rate is less, except as provided in subdivision (b):(1)The rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds.(2)A rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method.(b)Notwithstanding subdivision (a), the interest rate shall not be set at a rate lower than 3 percent.(c)The interest on any loan from the fund shall be repaid in regular installments withdrawn from the annual apportionment the charter school that benefits from the loan receives.(d)All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
Amended IN Senate April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 631Introduced by Senator RichardsonFebruary 20, 2025 An act to amend Sections 41365 and 41366.5 of the Education Code, relating to charter schools, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 631, as amended, Richardson. Charter School Revolving Loan Fund.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 schools 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. 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 charter 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 instead would authorize loans from the fund to be made indirectly to a chartering authority for one or more charter schools, would restrict loans that are made directly to a charter school to those charter schools formed as a nonprofit corporation, and would additionally authorize loans to be made indirectly to an entity managing a charter school, as provided. would remove the above-described limitation on loans to be made only for, or to, charter schools that are not a conversion of an existing school. The 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 increase revise and recast the maximum repayment period of a loan from 5 years to instead be 15 years, 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 interest rate is prohibited from being set at a rate lower than 3%. By expanding the eligibility for and purposes of previously appropriated funds, the bill would make an appropriation.Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO
Amended IN Senate April 21, 2025
Amended IN Senate April 21, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 631
Introduced by Senator RichardsonFebruary 20, 2025
Introduced by Senator Richardson
February 20, 2025
An act to amend Sections 41365 and 41366.5 of the Education Code, relating to charter schools, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 631, as amended, Richardson. Charter School Revolving Loan Fund.
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 schools 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. 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 charter 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 instead would authorize loans from the fund to be made indirectly to a chartering authority for one or more charter schools, would restrict loans that are made directly to a charter school to those charter schools formed as a nonprofit corporation, and would additionally authorize loans to be made indirectly to an entity managing a charter school, as provided. would remove the above-described limitation on loans to be made only for, or to, charter schools that are not a conversion of an existing school. The 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 increase revise and recast the maximum repayment period of a loan from 5 years to instead be 15 years, 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 interest rate is prohibited from being set at a rate lower than 3%. By expanding the eligibility for and purposes of previously appropriated funds, the bill would make an appropriation.
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 schools 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. 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 charter 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 instead would authorize loans from the fund to be made indirectly to a chartering authority for one or more charter schools, would restrict loans that are made directly to a charter school to those charter schools formed as a nonprofit corporation, and would additionally authorize loans to be made indirectly to an entity managing a charter school, as provided. would remove the above-described limitation on loans to be made only for, or to, charter schools that are not a conversion of an existing school. The 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 increase revise and recast the maximum repayment period of a loan from 5 years to instead be 15 years, 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 interest rate is prohibited from being set at a rate lower than 3%. By expanding the eligibility for and purposes of previously appropriated funds, the bill would make an appropriation.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 41365 of the Education Code is amended to read:41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.SEC. 2. Section 41366.5 of the Education Code is amended to read:41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.SECTION 1.Section 41365 of the Education Code is amended to read:41365.(a)The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b)Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c)Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund indirectly to a chartering authority for one or more charter schools, indirectly to an entity managing a charter school, or directly to a charter school that is formed as a nonprofit corporation and qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4. Money loaned to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this subdivision shall not exceed five hundred thousand dollars ($500,000) over the lifetime of the charter school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school that is formed as a nonprofit corporation, the entity managing the charter school, or the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed five hundred thousand dollars ($500,000).(d)The California School Finance Authority may consider all of the following when making a determination to approve a charter schools loan application:(1)For a charter school that is formed as a nonprofit corporation or for an entity managing a charter school, the soundness of the financial business plans of the charter school.(2)Availability of the charter school of other sources of funding.(3)Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4)The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5)Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6)The financial needs of the charter school.(e)Priority for loans from the Charter School Revolving Loan Fund shall be given in the following order:(1)To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(2)To new charter schools that are not a conversion of an existing school for startup costs.(3)All other charter schools.(f)Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall deduct from apportionments made to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation, as appropriate, an amount equal to the annual repayment of the amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation for the charter school under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed 15 years for any loan.(g)The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.(h)For purposes of this section, all of the following definitions apply:(1)Charter school means a school that was established and is operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2)Entity managing a charter school has the same meaning as defined in Section 47604.1.SEC. 2.Section 41366.5 of the Education Code is amended to read:41366.5.(a)Moneys in the Charter School Revolving Loan Fund shall be loaned at whichever interest rate is less, except as provided in subdivision (b):(1)The rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds.(2)A rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method.(b)Notwithstanding subdivision (a), the interest rate shall not be set at a rate lower than 3 percent.(c)The interest on any loan from the fund shall be repaid in regular installments withdrawn from the annual apportionment the charter school that benefits from the loan receives.(d)All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 41365 of the Education Code is amended to read:41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
SECTION 1. Section 41365 of the Education Code is amended to read:
### SECTION 1.
41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:(1) Soundness The soundness of the financial business plans of the applicant charter school.(2) Availability of the charter school of other sources of funding.(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.(6) The financial needs of the charter school.(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:(1) To new charter schools that are not a conversion of an existing school for startup costs.(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.(3) All other charter schools.(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
41365. (a) The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.
###### 41365.
(b) Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.
(c) Loans Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund to a chartering authority for one or more charter schools that are not a conversion of an existing school, schools, or directly to a charter school that qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4 that is not a conversion of an existing school, upon application of a chartering authority or charter school and approval by the California School Finance Authority. 4. Money loaned to a chartering authority for a charter school, or directly to a charter school, pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, or directly to a charter school, pursuant to this subdivision shall not exceed two five hundred fifty thousand dollars ($250,000) ($500,000) over the lifetime of the charter school. school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school or to the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed two five hundred fifty thousand dollars ($250,000). This subdivision does not apply to a charter school that obtains renewal of a charter pursuant to Section 47607. ($500,000).
(d) The California School Finance Authority may consider all of the following when making a determination as to the approval of to approve a charter schools loan application:
(1) Soundness The soundness of the financial business plans of the applicant charter school.
(2) Availability of the charter school of other sources of funding.
(3) Geographic distribution of loans made from the Charter School Revolving Loan Fund.
(4) The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.
(5) Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.
(6) The financial needs of the charter school.
(e) Priority for loans from the Charter School Revolving Loan Fund shall be given to new in the following order:
(1) To new charter schools that are not a conversion of an existing school for startup costs.
(2) To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.
(3) All other charter schools.
(f) (1) Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall 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 under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority or charter school shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed five years for any loan. Fund.
(2) Charter schools that meet the priority criteria of paragraph (2) of subdivision (e) may request to start payments no later than the first fiscal year after the most recent full year of operation, subject to the approval of the California School Finance Authority.
(3) The number of repayment years pursuant to paragraph (1) shall not exceed five years for charter schools that meet the priority criteria of paragraph (1) or (3) of subdivision (e) and shall not exceed eight years for charter schools that meet the priority criteria of paragraph (2).
(g) (1) Notwithstanding any other law, a loan may be made directly to a charter school pursuant to this section only in the case of a charter school that is incorporated. established and operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.
(2) Notwithstanding any other law, in the case of default of a loan made directly to a charter school pursuant to this section, the charter school and the entity managing the charter school, as defined in Section 47604.1, shall be solely liable for repayment of the loan.
(h) The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
SEC. 2. Section 41366.5 of the Education Code is amended to read:41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
SEC. 2. Section 41366.5 of the Education Code is amended to read:
### SEC. 2.
41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall be loaned at (1) the interest rate earned by the money rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds to the charter school. or (2) a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method, whichever is less, except that the rate shall not be set at a rate lower than 3 percent.
###### 41366.5.
(b) A charter school shall pay the interest on any loan from the fund in regular installments withdrawn from the annual apportionment the charter school receives.
(c) All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.
(a)The Charter School Revolving Loan Fund is hereby created in the State Treasury. The Charter School Revolving Loan Fund shall be composed of federal funds obtained by the state for charter schools and any other funds appropriated or transferred to the fund through the annual budget process. Funds appropriated to the Charter School Revolving Loan Fund shall remain available for purposes of the fund until reappropriated or reverted by the Legislature through the annual Budget Act or any other act.
(b)Commencing with the 201314 fiscal year, the administration of the Charter School Revolving Loan Fund shall be transferred to the California School Finance Authority.
(c)Upon application and approval by the California School Finance Authority, loans may be made from moneys in the Charter School Revolving Loan Fund indirectly to a chartering authority for one or more charter schools, indirectly to an entity managing a charter school, or directly to a charter school that is formed as a nonprofit corporation and qualifies to receive funding pursuant to Chapter 6 (commencing with Section 47630) of Part 26.8 of Division 4. Money loaned to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this section shall be used only to meet the purposes of the charter granted pursuant to Section 47605. The loan to a chartering authority for a charter school, an entity managing a charter school, or a charter school pursuant to this subdivision shall not exceed five hundred thousand dollars ($500,000) over the lifetime of the charter school receiving the benefit of the loan. A charter school may receive money obtained from multiple loans made directly to the charter school that is formed as a nonprofit corporation, the entity managing the charter school, or the charter schools chartering authority from the Charter School Revolving Loan Fund, as long as the total amount received from the fund over the lifetime of the charter school does not exceed five hundred thousand dollars ($500,000).
(d)The California School Finance Authority may consider all of the following when making a determination to approve a charter schools loan application:
(1)For a charter school that is formed as a nonprofit corporation or for an entity managing a charter school, the soundness of the financial business plans of the charter school.
(2)Availability of the charter school of other sources of funding.
(3)Geographic distribution of loans made from the Charter School Revolving Loan Fund.
(4)The impact that receipt of funds received pursuant to this section will have on the charter schools receipt of other private and public financing.
(5)Plans for creative uses of the funds received pursuant to this section, such as loan guarantees or other types of credit enhancements.
(6)The financial needs of the charter school.
(e)Priority for loans from the Charter School Revolving Loan Fund shall be given in the following order:
(1)To charter schools impacted by a state of emergency caused by a natural disaster that has been proclaimed by the Governor pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code.
(2)To new charter schools that are not a conversion of an existing school for startup costs.
(3)All other charter schools.
(f)Commencing with the first fiscal year following the fiscal year the charter school receives the loan, the Controller shall deduct from apportionments made to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation, as appropriate, an amount equal to the annual repayment of the amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation for the charter school under this section and pay the same amount into the Charter School Revolving Loan Fund in the State Treasury. Repayment of the full amount loaned to the chartering authority, entity managing the charter school, or charter school formed as a nonprofit corporation shall be deducted by the Controller in equal annual amounts over a number of years agreed upon between the loan recipient and the state agency authorized to administer the Charter School Revolving Loan Fund and the Charter School Security Fund, not to exceed 15 years for any loan.
(g)The California School Finance Authority may adopt any necessary rules and regulations for the implementation of this section and Sections 41366.6 and 41367. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
(h)For purposes of this section, all of the following definitions apply:
(1)Charter school means a school that was established and is operating pursuant to Part 26.8 (commencing with Section 47600) of Division 4.
(2)Entity managing a charter school has the same meaning as defined in Section 47604.1.
(a)Moneys in the Charter School Revolving Loan Fund shall be loaned at whichever interest rate is less, except as provided in subdivision (b):
(1)The rate paid on moneys in the Pooled Money Investment Account as of the date of disbursement of the funds.
(2)A rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, computed according to the true interest cost method.
(b)Notwithstanding subdivision (a), the interest rate shall not be set at a rate lower than 3 percent.
(c)The interest on any loan from the fund shall be repaid in regular installments withdrawn from the annual apportionment the charter school that benefits from the loan receives.
(d)All interest payments shall be paid into the Charter School Security Fund established pursuant to Section 41367.