CaliforniaSB 6312025-2026 Regular SessionSenateWALLET

Charter School Revolving Loan Fund.

Sponsored By: Laura Richardson (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Repayment, interest, and default rules

Starting the first fiscal year after a loan, the State Controller takes equal yearly payments from apportionments. Repayment lasts up to 5 years, or up to 8 years for disaster‑priority schools. With CSFA approval, disaster‑priority schools may delay the first payment until after their most recent full year of operation. The interest rate is the lower of the PMIA rate on disbursement or half of the state’s latest general obligation bond rate, but not below 3%. Interest is paid in regular installments from apportionments and goes into the Charter School Security Fund. If a direct‑loan borrower defaults, the charter school and its managing entity are both liable.

Stronger oversight and fund backstops

CSFA monitors both funds and can ask to move money from the Security Fund to the Loan Fund to replace losses. CSFA must try to recover from the borrower first and get approval from the Director of Finance. After written notice to the Joint Legislative Budget Committee, a transfer can occur no sooner than 30 days later. By October 1 each year, CSFA reports prior‑year balances, revenues, itemized spending, and projections to finance and legislative offices. The October 1, 2029 report must show how loans issued on or after July 1, 2026 were spent, including facilities, staff, startup costs, equipment, services to pupils, and loan administration. Loan recipients must provide information, and CSFA can adopt emergency rules to run the program.

Who gets state charter school loans

The state runs a Charter School Revolving Loan Fund through the California School Finance Authority. It holds federal and state‑budgeted money that stays available until the Legislature reuses or returns it. Loans can go to a chartering authority for one or more schools, or directly to a qualifying charter school. Schools must not be conversions, and loan money must support the school’s charter purposes. First priority is new schools for startup costs. Second priority, through July 1, 2029, is for schools damaged or closed 10+ schooldays in a governor‑declared emergency. Each school can receive up to $500,000 total from this fund. CSFA weighs financial plans, other funding, geography, effects on other financing, credit enhancements, and the school’s financial need.

Sponsors & Cosponsors

Sponsor

Laura Richardson
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 199 • No: 1

Senate vote • 9/10/2025

Item 79 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/9/2025

Item 91 — Assembly AFLOOR

Yes: 78 • No: 0

legislature vote • 8/29/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/2/2025

Vote in CX03

Yes: 9 • No: 0

Senate vote • 5/28/2025

Item 182 — Senate SFLOOR

Yes: 38 • No: 0

legislature vote • 5/23/2025

Vote in CS61

Yes: 5 • No: 1

legislature vote • 5/12/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 4/30/2025

Vote in CS44