Report 2022-110R Recommendation Responses
Report 2022-110R: Charter School Facility Grant Program and Conduit Financing Program: The Programs Are Generally Achieving Their Purpose of Increasing Charter Schools' Access to Facility Funding (Release Date: February 2023)
Recommendation for Legislative Action
To mitigate the negative impact that charter school closures may have on students' education, the Legislature should amend state law to give the Office of the Attorney General the authority to approve, conditionally approve, or deny the sale or lease of a charter school facility if the charter school benefited significantly from Facility Grant Program funds and paid rent to a closely associated entity. To facilitate this authority, the law should include a means by which the Attorney General would receive notification about such sale or lease agreements. For example, the Legislature could require the organization that owns the facility to notify the Attorney General.
Description of Legislative Action
AB 1604 (Bonta, 2023) would require a charter school, charter management organization, subsidiary of a charter school, or the subsidiary of a charter management organization that operates or controls an educational facility that has been substantially funded with Facility Grant Program funds to provide written notice to the Attorney General before entering into an agreement or transaction to, among other things, sell or lease the educational facility. The bill would require the Attorney General to notify the educational facility owner in writing of the decision to consent to, give conditional consent to, or not consent to the agreement or transaction. This bill is pending in the Assembly.
- Legislative Action Current As-of: January 2026
California State Auditor's Assessment of 60-Day Status: Legislation Introduced
Description of Legislative Action
As of 8/14/23 the Legislature has not taken any action in the 2023/24 Legislative Session to address this specific recommendation.
AB 1604 (Bonta, 2023) would have required a charter school, charter management organization, subsidiary of a charter school, or the subsidiary of a charter management organization that operates or controls an educational facility that has been substantially funded with Facility Grant Program funds to provide written notice to the Attorney General before entering into an agreement or transaction to, among other things, sell or lease the educational facility. The bill would require the Attorney General to notify the educational facility owner in writing of the decision to consent to, give conditional consent to, or not consent to the agreement or transaction. However, these provisions were removed from the bill.
- Legislative Action Current As-of: January 2026
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
As of 2/14/24 the Legislature has not taken any action in the 2023/24 Legislative Session to address this specific recommendation.
- Legislative Action Current As-of: January 2026
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of 2/14/25 the Legislature has not taken any action in the 2025/26 Legislative Session to address this specific recommendation.
- Legislative Action Current As-of: January 2026