AB 2316 California Assembly · 2025-2026 Regular Session

School facilities: Charter School Facilities Program: undue financial burden.

Summary

The Leroy F. Greene School Facilities Act of 1998 provides for the adoption of rules, regulations, and procedures, under the administration of the Director of General Services, for the allocation of state funds by the State Allocation Board for the construction and modernization of public school facilities. Existing law establishes the Charter Schools Facilities Program within the Leroy F. Greene School Facilities Act of 1998 to provide funding to qualifying entities for the purpose of establishing school facilities for charter school pupils. Existing law requires that a 50% matching share be provided by charter schools applying for facilities funding under the program. Existing law requires the California School Finance Authority, in consultation with the board, to adopt regulations for the program, including, among other regulations, the process for determining the manner in which the applicant will pay its local matching share, including the method for determining lease payments to be made in lieu of the local matching share. This bill would, commencing January 1, 2028, for filing rounds opened on or after January 1, 2028, if the 50% local share matching obligation or lease payments would result in the applicant charter school suffering an undue financial burden, as provided, require the authority to notify the board and authorize the board to reduce the 50% local share matching obligation or lease payments, and correspondingly increase the grant amount, as necessary for the school to reach a reasonable level of debt service. The bill would require the authority, in consultation with the board, to adopt regulations for that purpose and would require the authority and the board to adopt the method for determining whether the 50% local share matching obligation or lease payments would result in the charter school suffering an undue financial burden, in consultation with the department and the County Office Fiscal Crisis and Management Assistance Team. The bill would also make conforming changes.

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Aug 2026

Assembly Passage

May 2026

Senate Passage

Aug 2026

Governor

Introduced Feb 19, 2026 Last action Aug 27, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

08/13/26 - Amended Senate → AB2316 · 1 edit

MINOR

The changes between these two versions of AB 2316 are entirely presentational and formatting-related. The bill text was converted from a traditional printed legislative document format (with line numbers, page markers, and column layout) to a web-based display format with navigation elements. No substantive policy language was added, removed, or modified.

TECHNICAL

The bill was reformatted from a traditional printed legislative document (with line numbers, page numbers, and two-column layout) into a web-based presentation format with site navigation elements such as search bars, menu links, and section headers.

04/06/26 - Amended Assembly → 08/13/26 - Amended Senate · 4 edits · Aug 13, 2026

MODERATE

The Senate amendment to AB 2316 delays the effective date of the undue financial burden relief provision from January 1, 2027 to January 1, 2028 (limited to filing rounds opened on or after that date), narrows the types of grants considered in the financial burden analysis to 'facility-related' grants only, broadens eligibility by allowing schools that have either applied for or received other grants to qualify, and adjusts the lease payment calculation formula to reference the 'applicable local share matching obligation' rather than a fixed half of total project costs.

TIMELINE

The effective date for the undue financial burden relief was delayed from January 1, 2027 to January 1, 2028, and is now limited to filing rounds opened on or after January 1, 2028. This gives charter schools one less year of access to the matching obligation reduction.

ELIGIBILITY

The grant consideration in the undue financial burden determination was narrowed from all 'state and federal grants' to only 'state and federal facility-related grants.' Schools will no longer have non-facility grants (such as academic or operational grants) counted toward their financial burden analysis.

The requirement for demonstrating eligibility for a matching obligation reduction was broadened from having 'applied for' all other state and federal facility grants to having 'applied for or received' them. This makes it easier for schools to qualify for the reduction since receiving a grant now also satisfies the requirement.

TECHNICAL

The lease payment calculation formula was changed from amortizing 'one-half of the total approved project costs' to amortizing 'one-half the applicable local share matching obligation of the total approved project costs.' This means if the board reduces a school's matching obligation below 50 percent, the lease payments will be calculated based on that reduced amount rather than always being half of total project costs.

02/19/26 - Introduced → 04/06/26 - Amended Assembly · 4 edits · Apr 6, 2026

MODERATE

AB 2316 was amended to delay the effective date of its undue financial burden relief provision from January 1, 2027 to January 1, 2028, and to add detailed eligibility requirements that charter schools must meet before they can receive a reduction in their 50 percent local matching share. The amendment also requires the authority and the board to jointly adopt the method for determining undue financial burden, in consultation with additional state agencies, rather than leaving it solely to the authority.

TIMELINE

The effective date for the undue financial burden relief provision was changed from January 1, 2027 to January 1, 2028, giving charter schools and implementing agencies an additional year before the new rules take effect.

ELIGIBILITY

New eligibility requirements were added for charter schools seeking a reduction in their local matching share. Schools must demonstrate that they applied for all other eligible state and federal facility grants in the 12 months before applying, made a written request to their chartering authority to include the project in the next local general obligation bond, reported all local GO bond funds received in the previous five years, and disclosed any transfers of funds or assets exceeding $500,000 or 5 percent of total revenue (whichever is less) in the previous five years with written explanations.

DEFINITION

A new definition of 'undue financial burden' was added, specifying that it shall be determined by considering: total state and federal grants received, total local GO bond funds provided by the chartering authority, amount of large transfers, and a threshold of the school's borrowing capacity and indebtedness. A new definition of 'chartering authority' was also added.

REQUIREMENT

The method for determining undue financial burden must now be adopted jointly by the authority and the board, in consultation with the California Department of Education and the County Office Fiscal Crisis and Management Assistance Team, rather than being developed solely by the authority. The local share matching obligation or lease payments must also be updated based on the most current information provided.

Floor votes · Senate Aug 26, 2026 · Assembly May 28, 2026

How they voted

38–0

Passed · 2 other

Total votes 40

Aug 26, 2026

D Democratic30

28 Yea 2

93% Yea

R Republican10

10 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 27, 2026

Introduced

In Assembly. Concurrence in Senate amendments pending.

lower

Aug 26, 2026

Upper · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).

upper

Aug 13, 2026

Upper · Passed

Read second time and amended. Ordered returned to second reading.

upper

Aug 13, 2026

Introduced

From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).

upper

Aug 3, 2026

Committee

In committee: Referred to APPR. suspense file.

upper

Jun 25, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 24). Re-referred to Com. on APPR.

upper

Jun 10, 2026

Committee

Referred to Com. on ED.

upper

May 28, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 2316.)

lower

May 14, 2026

Lower · Passed

From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

lower

May 6, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 7, 2026

Committee

Re-referred to Com. on APPR.

lower

Apr 6, 2026

Lower · Passed

Read second time and amended.

lower

Mar 26, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (March 25).

lower

Mar 9, 2026

Committee

Referred to Com. on ED.

lower

Feb 20, 2026

Lower · Passed

From printer. May be heard in committee March 22.

lower

1 primary · 0 co-sponsors