SB 71: FUNDS/FUNDING: Provides relative to the administration of the Louisiana Charter School Start-Up Loan Fund and expands the authorized uses of the fund. (gov sig) (EN SEE FISC NOTE SD EX) - Louisiana

Senate Floor Bureau Note, #930, Foil, Adopted → SB71 Act 413 · 6 edits

MODERATE

The bill was converted from a Senate floor amendment into an Enrolled Act, formalizing the Louisiana Charter School Start-Up and Expansion Loan Fund. The legislation expands the fund's purpose to cover facility predevelopment and legal costs, broadens eligibility to include supporting organizations and real estate entities, and establishes specific rules for loan approval, usage, and repayment.

Scope change

The scope expanded from a simple loan fund to include funding for facility development and predevelopment activities, and the applicability was extended to include affiliated supporting organizations and nonprofit real estate entities alongside traditional charter schools.

DEFINITION

The fund name was updated to 'Louisiana Charter School Start-Up and Expansion Loan Fund' to reflect its new purpose of funding facility expansion.

ELIGIBILITY

Eligibility was expanded to include affiliated supporting organizations (509(a)(3) IRC) and wholly owned nonprofit real estate entities, not just the charter schools themselves.

FISCAL

The scope of fundable expenses was broadened to include facility predevelopment, development, and associated financing activities in addition to initial start-up and operating costs.

REQUIREMENT

New administrative rules were mandated to cover eligibility, processing procedures, security/collateral requirements, and detailed loan terms including interest rates and repayment schedules.

Loan approval processes were streamlined; Type 2 charter schools require only state board approval of their budget proposal, while Type 1 and 3 schools need only submit their approved charter proposal and budget.

ENFORCEMENT

A specific provision was added stating that if a loan is not repaid within three years due to the school ceasing operations, the purchased equipment and items become the property of the state.

SB71 Original → Senate Floor Bureau Note, #930, Foil, Adopted · 2 edits

MINOR

The bill was amended to remove specific references to 'loan' in two sections, likely to streamline language or prepare for a broader definition of fund usage. No substantive changes to funding amounts, eligibility criteria, or new requirements were identified in this specific markup.

TECHNICAL

Deleted the word 'loan' after 'from the' on page 5, line 7.

Deleted the word 'loan' after 'relative to' on page 6, line 19.

SB71 Enrolled → SB71 Original · 5 edits

MODERATE

The bill was renumbered and reclassified from an 'Enrolled' version to an 'Original' draft, indicating a procedural reset. Substantively, the bill shifts administrative authority from a generic 'division of administration' to the specific 'State Board of Elementary and Secondary Education,' clarifies that loan proceeds must be used for tangible items like equipment and facility repairs, and updates the required loan rules to include a per-pupil funding calculation and a specific maximum repayment term in years.

Scope change

The bill's scope of administration was narrowed and clarified by explicitly assigning authority to the State Board of Elementary and Secondary Education rather than a generic division, and by restricting loan usage to tangible assets.

REQUIREMENT

Administrative authority was transferred from a generic 'division of administration' to the specific 'State Board of Elementary and Secondary Education' to clarify oversight.

New rules must now include a per-pupil funding calculation as part of the loan application process.

The maximum repayment term for loans must now be explicitly defined in years within the adopted rules.

Loan usage is now explicitly restricted to tangible items such as equipment, technology, instructional materials, and facility acquisition or repairs.

TECHNICAL

The bill header was changed from 'Enrolled' to 'Original' and page counts were updated, reflecting a procedural revision of the document.

SB71 Reengrossed → SB71 Enrolled · 3 edits · Jun 20, 2025

MINOR

The bill was finalized as an enrolled version, changing the title from 'Reengrossed' to 'Enrolled' and reducing the page count from 12 to 8. Substantively, the text includes new requirements for loan agreements to specify terms like interest rates and repayment schedules, and it adds a mandate for loan applications to include a per-pupil funding calculation. These changes clarify the financial mechanics of the loans and ensure applications demonstrate fiscal stability.

Scope change

The scope of the fund remains focused on providing no-interest loans to Type 1, 2, and 3 charter schools for start-up and expansion, with no change to the eligible school types or general purpose of the fund.

REQUIREMENT

New rules require loan applications to include a per-pupil funding calculation to assess the school's financial capacity.

Adopted rules must now explicitly define loan terms, including maximum interest rates, repayment schedules, and default provisions.

TECHNICAL

The document status changed from 'Reengrossed' to 'Enrolled', indicating the final version approved by both legislative chambers.

SB71 Engrossed → SB71 Reengrossed · 4 edits · Jun 3, 2025

MODERATE

The bill was reengrossed to correct a departmental name change, shifting administrative authority from the State Board of Elementary and Secondary Education to the Division of Administration. This change clarifies that the Division of Administration, rather than the Board itself, will manage the loan fund and adopt necessary rules, ensuring the correct agency handles the fund's operations.

Scope change

The scope of administrative authority was modified to assign responsibility to the Division of Administration instead of the State Board of Elementary and Secondary Education.

REQUIREMENT

Administrative authority was transferred from the State Board of Elementary and Secondary Education to the Division of Administration for managing the fund and entering contracts.

The agency responsible for allocating no-interest loans and determining other educational purposes was changed from the State Board to the Division of Administration.

The entity authorized to reimburse administrative expenses incurred in managing the fund was updated to the Division of Administration.

DEFINITION

The legal definition of an eligible affiliated supporting organization was updated to reference the correct statutory code section (R.S. 17:3971 et seq.).

FUNDS/FUNDING: Provides relative to the administration of the Louisiana Charter School Start-Up Loan Fund and expands the authorized uses of the fund. (gov sig) (EN SEE FISC NOTE SD EX)

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