2007 California Education Code Article 12. Charter Schools

CA Codes (edc:17078.52-17078.66)

17078.52.  (a) There is hereby established the Charter Schools
Facilities Program to provide funding to qualifying entities for the
purpose of establishing school facilities for charter school pupils.

   (b) (1) The 2002 Charter School Facilities Account is hereby
established within the 2002 State School Facilities Fund established
pursuant to subdivision (b) of Section 17070.40. The proceeds of
bonds, as set forth in subparagraph (A) of paragraph (1) of
subdivision (a) of Section 100620, shall be deposited into the 2002
Charter School Facilities Account for the purposes of this article.
Notwithstanding Section 13340 of the Government Code, funds deposited
into the account are hereby continuously appropriated for the
purposes of this article.
   (2) The 2004 Charter School Facilities Account is hereby
established within the 2004 State School Facilities Fund established
pursuant to subdivision (c) of Section 17070.40. The proceeds of
bonds, as set forth in subparagraph (A) of paragraph (1) of
subdivision (a) of Section 100820, if approved by the voters, shall
be deposited into the 2004 Charter School Facilities Account for the
purposes of this article. Notwithstanding Section 13340 of the
Government Code, funds deposited into the account are hereby
continuously appropriated for the purposes of this article.
   (3) The 2006 Charter School Facilities Account is hereby
established within the 2006 State School Facilities Fund established
pursuant to subdivision (d) of Section 17070.40. The proceeds of
bonds, as set forth in paragraph (2) of subdivision (a) of Section
101012, if approved by the voters, shall be deposited into the 2006
Charter School Facilities Account for the purposes of this article.
Notwithstanding Section 13340 of the Government Code, funds deposited
into the account are hereby continuously appropriated for the
purposes of this article.
   (c) As used in this article, the following terms have the
following meanings:
   (1) "Authority" means the California School Finance Authority
established pursuant to Section 17172.
   (2) "Account" means the pertinent account established under
subdivision (b).
   (3) "Preliminary apportionment" means an apportionment made for
eligible applicants under this article in advance of full compliance
with all of the application requirements otherwise required for an
apportionment pursuant to this chapter. The process for making
preliminary apportionments under this article shall be substantially
identical to the process established for critically overcrowded
schools pursuant to Sections 17078.22 to 17078.30, inclusive.
   (4) "Financially sound" means a charter school that has
demonstrated, over a period of time determined by the authority, but
not less than 24 months immediately preceding the submission of the
application, that it has operated as a financially capable concern in
California, as measured by criteria established by the authority. A
charter school that cannot demonstrate that it has been a financially
capable concern for at least 24 months immediately preceding the
submission of the application, due solely to not having operated as a
charter school for at least 24 months, may meet this 24-month
requirement if the charter school is managed by staff who have at
least 24 months of documented experience, as measured by criteria
established by the authority and the charter school has an
educational plan, financial resources, facilities expertise,
management expertise, and has been a financially capable concern for
at least 24 months, as established by the authority.
   (d) The board shall, from time to time, transfer funds within the
account to the California School Finance Authority Fund for the
purposes of this article pursuant to the request of the authority as
set forth in this article.


17078.53.  (a) The initial preliminary applications for projects to
be funded pursuant to this article shall be submitted to the board by
March 31, 2003. Thereafter, the board may establish subsequent
application periods as needed.
   (b) Preliminary applications may be submitted by eligible
applicants as set forth in this article by either of the following:
   (1) A school district on behalf of a charter school that is
physically located within the geographical jurisdiction of the school
district.
   (2) A charter school on its own behalf if the charter school has
notified both the superintendent and the governing board of the
school district in which it is physically located of its intent to do
so in writing at least 30 days prior to submission of the
preliminary application.
   (c) A preliminary application shall demonstrate either of the
following:
   (1) That a charter petition for the school for which the
application is submitted has been granted by the appropriate
chartering entity prior to the application deadline determined by the
board.
   (2) That an already existing charter has been amended to include
the school for which the application is submitted and approved by the
appropriate chartering entity prior to the deadline determined by
the board.
   (d) A preliminary application shall include either of the
following:
   (1) For a preliminary application submitted pursuant to paragraph
(1) of subdivision (b), the number of unhoused pupils determined
pursuant to Article 3 (commencing with Section 17071.75) that will be
housed by the project for which the preliminary application has been
submitted.
   (2) For a preliminary application submitted pursuant to paragraph
(2) of subdivision (b), a certification from the governing board of
the district within which the charter school is physically located of
the number of unhoused pupils for that district determined pursuant
to Article 3 (commencing with Section 17071.75) that will be housed
by the project for which the preliminary application has been
submitted.
   (e) Prior to submitting a preliminary application, the school
district and charter school shall consider existing school district
facilities in accordance with Section 47614.
   (f) The board, after consideration of the recommendations of the
authority regarding whether a charter school is financially sound,
shall approve the preliminary application and shall make the
preliminary apportionment for funding pursuant to this article.
   (g) (1) The board shall establish a process to ensure that pupil
attendance in a charter school that is physically located within the
geographical jurisdiction of a school district is counted as
per-pupil eligibility for that school district and to ensure that the
same per-pupil attendance is not so counted for any other school
district or other applicant under this chapter.
   (2) (A) Except as provided pursuant to subparagraph (B) and
notwithstanding subdivision (b) of Section 17071.75, the number of
pupils for which facilities are provided under this article shall not
be included in the sum determined under subdivision (b) of Section
17071.75.
   (B) The number of unhoused pupils determined pursuant to
subdivision (d) that will be housed by the project for which a
preliminary application has been submitted shall be included in the
sum determined under subdivision (b) of Section 17071.75.
   (h) The board shall establish a process to be used for release of
funds for approved projects pursuant to this article. Notwithstanding
Section 17072.30, the board may provide for the release of planning
and site acquisition funds prior to the approval of the project by
the Department of General Services pursuant to the Field Act, as
defined in Section 17281.



17078.54.  (a) An eligible project under this article shall include
funding, as permitted by this chapter, for new construction or
rehabilitation of a school facility for charter school pupils, as set
forth in this article. A project may include, but is not limited to,
the cost of retrofitting an existing building for charter school
purposes, purchasing a building, or retrofitting a building that has
been purchased by the charter school, if those costs have not been
previously funded under this chapter, but may not exceed the amounts
set forth in subdivision (b). Existing school buildings made
available by a school district that will be rehabilitated for the
purposes of this article are not subject to Article 6 (commencing
with Section 17073.10). An allocation of funds shall not be made for
a school facility that is less than 15 years old.
   (b) The maximum amount of the funding pursuant to this article
shall be determined by calculating the charter school's per-pupil
grant amount plus other allowable costs as set forth in this chapter.
Funding shall be provided by the authority for new facility
construction or rehabilitation as set forth in Section 17078.58.
   (c) To be funded under this article, a project shall comply with
all of the following:
   (1) It shall meet all the requirements regarding public school
construction, plan approvals, toxic substance review, site selection,
and site approval, as would any noncharter school project of a
school district under this chapter, including, but not limited to,
regulations adopted by the State Architect pursuant to Section
17280.5 relating to the retrofitting of existing buildings, as
applicable.
   (2) Notwithstanding any provision of law to the contrary,
including, but not limited to paragraph (1), the board, after
consulting with the relevant regulatory agencies, shall, to the
extent feasible, adopt regulations establishing a process for
projects to be subject to a streamlined method for obtaining
regulatory approvals for all requirements described in paragraph (1),
except for the requirements of the Field Act as defined in Section
17281 which shall be complied with in the same manner as any other
project under this chapter.
   (3) The board shall fund only new construction to be physically
located within the geographical jurisdiction of a school district.
   (d) Facilities funded pursuant to this article shall have a 50
percent local share matching obligation that may be paid by the
applicant through lease payments in lieu of the matching share, or as
otherwise set forth in this article, including, but not limited to,
Section 17078.58.
   (e) The authority may charge its administrative costs against the
respective 2002, 2004, or 2006 Charter School Facilities Account,
which shall be subject to the approval of the Department of Finance
and which may not exceed 2.5 percent of the account.



17078.56.  (a) The board, in consultation with the authority, shall
approve projects pursuant to this article as otherwise set forth in
this chapter, and shall make preliminary apportionments only to
financially sound applicants in accordance with all of the following
criteria:
   (1) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of the various geographical regions of the state.
   (2) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of urban, rural, and suburban regions of the state.
   (3) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of large, medium, and small charter schools throughout
the state.
   (4) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of the various grade levels of pupils served by
charter school applicants throughout the state.
   (b) While ensuring that the requirements of subdivision (a) are
met when considering all approved projects under this article as a
whole, the board shall, within each factor of the criteria set forth
in subdivision (a), give a preference to charter schools in
overcrowded school districts, charter schools in low-income areas,
charter schools operated by not-for-profit entities, and charter
schools that utilize existing school district facilities.




17078.57.  (a) The authority, in consultation with the board, shall
adopt regulations establishing uniform terms and conditions that
shall apply equally to all projects for funding in accordance with
Section 17078.58, including, but not limited to, all of the
following:
   (1) The process for determining the manner in which the applicant
will pay its local matching share, including the method for
determining any lease payments to be made in lieu of the local
matching share.  The regulations shall comply with all of the
following criteria:
   (A) The payment process set forth in Section 17199.4 may be used.

   (B) The payment process shall permit lump-sum local matching
payments and shall permit establishment of a schedule for lease
payments to be made in lieu of the local matching share.
   (C) The lease payment schedule shall be calculated by amortizing
one-half of the total approved project costs, minus any lump-sum
payments, over the entire payment period as set forth in Section
17078.58.
   (D) The payment schedule for lease payments in lieu of the local
matching funds pursuant to this section shall be based upon payment,
within a reasonable period of time not to exceed a 30-year period, of
one-half of the total eligible project costs, and shall be
calculated in a manner that is designed to result in full payment of
that portion, together with interest thereon at the rate paid on
moneys in the Pooled Money Investment Account as of the date of
disbursement of the funding.
   (2) The method for determining whether a charter school is
financially sound.  In the case of a charter school chartered by a
school district that is located outside of the school district that
chartered it, the method developed by the authority shall include,
but shall not be limited to, a site visit to the school facility
currently being used by the charter school during hours when pupils
are present and instruction is being provided.
   (3) (A) Security provisions, including, but not limited to, the
requirement that title to project facilities be held by the school
district in which the facility is to be physically located, in trust,
for the benefit of the state public school system.
   (B) The authority shall adopt a mechanism whereby a person or
entity who provides a substantial contribution that is applied to the
costs of the project in excess of the state share and the local
matching share may be granted a security interest to be satisfied
from the proceeds, if any, realized when the property is ultimately
disposed of as set forth in paragraph (5) of subdivision (b) of
Section 17078.62.
   (4) The method for integrating funding pursuant to this article
with the authority's general procedures pursuant to subdivision (i)
of Section 17180 for otherwise funding projects eligible for funding
under this chapter, if appropriate.
   (b) The authority may adopt, amend, or repeal rules and
regulations pursuant to this chapter as emergency regulations. The
adoption, amendment, or repeal of these regulations is conclusively
presumed to be necessary for the immediate preservation of the public
peace, health, safety, or general welfare within the meaning of
Section 11346.1 of the Government Code.



17078.58.  (a) Funding granted pursuant to this article may not
exceed 100 percent of the total allowable project costs as determined
by calculating double the per-pupil grant eligibility as set forth
in Section 17072.10, and subdivision (e) of Section 17078.53, plus
100 percent of all other allowable construction project costs, as
appropriate to the project, that would otherwise be available to
school district projects as set forth in this chapter. Funding
granted for the purposes of rehabilitating buildings under Section
17078.54 shall be limited to the costs necessary to comply with
subdivision (c) of Section 17078.54, and shall not exceed the maximum
costs that would otherwise be allowable for a new construction
project funded under this article.
   (b) The local share equivalent shall be collected in the form of
lease payments or otherwise as set forth in this article.
   (c) Lease payments in lieu of local share payments, and any other
local share payments made pursuant to this article, shall be made to
the board for deposit into the respective 2002, 2004, or 2006 Charter
School Facilities Account. Funds deposited into the account pursuant
to this section may be used by the board only for a purpose related
to charter school facilities pursuant to this article.
   (d) When a preliminary apportionment under this article is
converted to a final apportionment, any funds not needed for the
final apportionment shall remain in the 2002, 2004, or 2006 Charter
School Facilities Account for use by the board for any purpose
related to charter school facilities pursuant to this article.




17078.62.  (a) As a first priority, the existing charter school
shall be permitted to continue to use the facility until it is no
longer needed by the charter school for charter school purposes.
   (b) If the charter school occupying a facility funded pursuant to
this article ceases to utilize the facility for a charter school
purpose, all of the following apply:
   (1) If the charter school is no longer using the facility because
the school district in which the charter school is located has
revoked or declined to renew the charter, the school district, as a
necessary component of the first priority established in subdivision
(a), may not immediately occupy the facility, but shall allow a
reasonable time, not to exceed six months, for completion of the
review process contemplated in Section 47607 or 47607.5.
   (2) As a second priority, any qualifying successor charter school
shall be permitted to meet its facility needs by occupying the
facility on equal terms as the prior charter school occupant.
   (3) As a third priority, the school district in which the charter
school is physically located may notify the authority and take
possession of the facility and make the facility available for
continued use as a public school facility.
   (4) If the school district in which the charter school is
physically located elects to take possession of a facility pursuant
to paragraph (3), it shall pay the balance of the unpaid local
matching share or demonstrate that it is willing and able to continue
to make the lease payments in lieu of the local matching share on
the same terms.  However, the payments shall be reduced or
eliminated, as appropriate, if the school district complies with all
of the following:
   (A) It demonstrates that it would have been eligible for hardship
funding under Article 8 (commencing with Section 17075.10) at the
time that the application for funding the facility under this article
was originally submitted.
   (B) It certifies to the board that it will utilize the facilities
for public school purposes for a period of at least five years from
the date that it occupies the facility.
   (5) If the school district declines to take possession pursuant to
paragraph (3), or if the facility is subsequently no longer needed
for public school purposes, the school district shall dispose of the
facilities in a manner otherwise applicable to the disposal of
surplus public schoolsites.  Any unpaid local matching share shall be
paid from the net proceeds, if any, of the disposition and shall be
deposited into the respective 2002 or 2004 Charter School Facilities
Account.  To the extent that funds remain from the proceeds of the
disposition after repayment of the local matching share, any security
interest granted to a person or entity pursuant to subparagraph (B)
of paragraph (3) of subdivision (a) of Section 17078.57 shall be
satisfied.
   (6) If the lease payments in lieu of the local matching share are
fully paid, the school district shall continue to hold title to the
facility, in trust, for the benefit of the state public school
system.  The school district shall permit continued use of the
facility for charter school purposes as long as the facility is
needed for those purposes.


17078.64.  (a) In lieu of applying for funding under this article, a
school district may elect to include facilities for a charter school
that would be physically located within its geographical
jurisdiction within its application for funding pursuant to the
general provisions of this chapter, other than this article.
However, the project would be outside the scope of this article,
would not be subject to its provisions, and shall comply with this
chapter in the same manner as any noncharter project.  Any per-pupil
eligibility that is used for that project shall not, also, support
any project under this article.
   (b) Except for those provisions in which the authority is
expressly required or authorized to adopt regulations pursuant to
this article, the board in consultation with the authority shall
adopt regulations to implement this article.   The board may adopt,
amend, or repeal rules and regulations pursuant to this article as
emergency regulations.  Until July 1, 2004, the adoption, amendment,
or repeal of these regulations is conclusively presumed to be
necessary for the immediate preservation of the public peace, health,
safety, or general welfare within the meaning of Section 11346.1 of
the Government Code.
   (c) This article is not applicable to projects funded with the
proceeds of state general obligation bonds approved by the voters
prior to January 1, 2002.



17078.66.  The State Allocation Board and the California School
Finance Authority shall jointly report to the Legislature by July 1,
2005, regarding all of the following:
   (a) The implementation of this article, including, but not limited
to, a description of the projects funded pursuant to this article
from the Kindergarten-University Public Education Facilities Bond Act
of 2004.
   (b) A description of the process whereby the board provides
funding for charter school facilities under provisions of this
chapter other than this article.
   (c) Recommendations, if any, regarding statutory changes needed to
facilitate and streamline the process described in subdivision (b).