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California Code, Education Code - EDC § 41366.6

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) The California School Finance Authority shall monitor the adequacy of the amount of funds in the Charter School Revolving Loan Fund and report annually to the Department of Finance and the Controller on the need, if any, to transfer funds from the Charter School Security Fund to the Charter School Revolving Loan Fund for the sole purpose of replacing funds lost in the Charter School Revolving Loan Fund due to loan defaults.  Before requesting any transfer of funds from the Charter School Security Fund, the California School Finance Authority shall make all reasonable efforts to recover funds directly from the defaulting loan recipient.  To the extent that the California School Finance Authority determines that a transfer from the Charter School Security Fund to the Charter School Revolving Loan Fund is necessary, the California School Finance Authority shall obtain approval from the Director of Finance before a transfer of funds is made.  Not sooner than 30 days after notification in writing to the Chairperson of the Joint Legislative Budget Committee, the Director of Finance shall direct the Controller to transfer the appropriate amount of funds.

(b)(1) By October 1 of each year, and in compliance with Section 9795 of the Government Code, the California School Finance Authority shall provide detailed fund condition information for the Charter School Revolving Loan Fund and the Charter School Security Fund to the Department of Finance, the Assembly Committee on Education, the Senate Committee on Education, the Assembly Budget Subcommittee on Education Finance, the Senate Budget and Fiscal Review Subcommittee on Education, and the Legislative Analyst's Office.  At a minimum, this information shall contain an accounting of actual beginning balances, revenues, itemized expenditures, and ending balances for the prior year, as well as projected beginning balances, revenues, itemized expenditures, and ending balances for the current year and budget year.

(2)(A) For the report due by October 1, 2029, the California School Finance Authority shall, in addition to the information required pursuant to paragraph (1), include an analysis and summary of the expenditures of loan funds made by the charter school loan recipient for loans issued on or after July 1, 2026.  The analysis and summary shall include, but not be limited to, expenditure information related to facilities, employees, startup costs, equipment, direct services to pupils, and the administration of the loan, as applicable.

(B) The California School Finance Authority shall first use information provided by the charter school loan recipient in the charter school's loan application and in program audits before requesting additional information from the charter school loan recipient.

(C) Charter school loan recipients shall provide information requested by the California School Finance Authority in order to meet the requirements of this paragraph.

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Cite this article: FindLaw.com - California Code, Education Code - EDC § 41366.6 - last updated January 01, 2025 | https://codes.findlaw.com/ca/education-code/edc-sect-41366-6/

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