Charter School Revolving Loan Fund.

The document was reformatted from an authenticated chaptered layout (with page numbers, running headers, and traditional legislative formatting) to a web page display with navigation menus, search tools, and version selection dropdowns. No changes to the actual statutory language.

The bill was renumbered as Chapter 776 and received the standard chaptered-law header reading 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' in place of the enrolled bill's legislative passage certification lines.

A governor approval line was added: '[Approved by Governor October 13, 2025. Filed with Secretary of State October 13, 2025.]'

The enrolled bill's Senate and Assembly passage certification blocks, the 'received by the Governor' line with blank date fields, and the 'Private Secretary of the Governor' signature line were removed.

Removed the requirement that a charter school be formed as a nonprofit corporation to receive a direct loan. Any charter school established and operating under Part 26.8 can now receive a direct loan.

Eliminated the ability to make loans indirectly to an entity managing a charter school. Loans can now only go to a chartering authority or directly to a charter school.

Reversed the priority order for loans: new charter schools seeking startup funds now receive first priority, while disaster-affected schools moved from first to second priority.

Tightened the disaster-affected school criterion from 'impacted by a state of emergency' to 'damaged, destroyed, or directly impacted as a result of a state of emergency.'

Added a requirement that the October 1, 2029 annual report include an analysis of how loan recipients spent funds from loans issued on or after July 1, 2026, covering facilities, employees, startup costs, equipment, direct pupil services, and loan administration.

Replaced the flat 15-year maximum repayment period with a tiered system: no more than 5 years for new schools and other schools, and no more than 8 years for disaster-affected schools.

Removed the word 'solely' from the default liability provision, meaning the charter school and its managing entity are liable but other parties (such as the chartering authority) may also bear responsibility.

Added a new Section 41366.6 requiring the California School Finance Authority to annually report fund condition data to the Department of Finance, Controller, both Education Committees, both budget subcommittees on education, and the Legislative Analyst's Office by October 1 each year.

Added a process for transferring funds from the Charter School Security Fund to the Revolving Loan Fund to cover defaults, requiring CSFA to first attempt recovery from the defaulting recipient, obtain Director of Finance approval, and provide 30 days written notice to the Joint Legislative Budget Committee Chairperson before the transfer.

Restored the requirement that charter schools receiving loans must not be a conversion of an existing school. Both loans made through a chartering authority and direct loans to a charter school are now explicitly limited to non-conversion schools.

The disaster-affected school priority category (priority 2) now has a sunset date of July 1, 2029, and requires that the school be closed for 10 or more schooldays as a result of conditions of disaster or extreme peril. Previously there was no time limit or minimum closure requirement.

Repayment year limits were restructured into subparagraphs (A) and (B). Subparagraph (B) adds 'notwithstanding' language to confirm that the 8-year maximum repayment period applies to disaster-affected schools (priority 2), making the exception more explicit.

The appropriation designation in the legislative counsel's digest was changed from 'Appropriation: yes' to 'Appropriation: no,' indicating the bill no longer makes a new appropriation, consistent with the narrowed eligibility scope.

Removed the requirement that charter schools receiving loans must not be a conversion of an existing school, making the fund available to all charter schools including conversions.

Revised loan priority criteria: removed 'new charter schools that are not a conversion of an existing school' as the top priority category and made schools impacted by a governor-declared natural disaster state of emergency the first priority, with all other charter schools second.

Increased the maximum loan amount and lifetime loan limitation from $250,000 to $500,000, doubling the total amount a single charter school can receive over its lifetime.

Extended the maximum repayment period from 5 years to up to 15 years, with a tiered structure: 5 years for most schools and 8 years for schools affected by a natural disaster state of emergency.

Expanded default liability so that both the charter school and the entity managing the charter school are solely liable for repayment, rather than only the charter school itself.