Senate passes charter school accountability bill after contentious debate; supporters say it closes loopholes, critics call for more work

The Senate on Saturday passed SB 414, a wide-ranging charter school accountability bill described by the author as the “Charter School Accountability Act” and a response to state audit reports documenting fiscal and oversight gaps.

Senator Ashby, the bill’s author, said SB 414 implements 55 new policies drawn from recommendations by the Legislative Analyst's Office, the state controller and FCMAT (Fiscal Crisis and Management Assistance Team). The bill includes an independent office of inspector general, technical assistance programs for authorizers, strengthened audit standards, and an extension of a moratorium on new non-classroom-based charter approvals by six months to allow implementation, the author said on the floor. Ashby said the measure reflects “over 85 hours of in-person negotiations” and stakeholder engagement and that it preserves educational options for vulnerable populations served by some charter operators.

Supporters including Senator Weber Pearson and others said the bill strengthens audits and authorizer oversight, protects taxpayer dollars and ensures accountability for charter contracting and finances. Senator Weber Pearson said the bill “is not about punishing good schools. It's about protecting students and taxpayers from abuse.” Senator Sciarra and others said they saw the measure as a necessary fix to documented problems.

Opponents or those urging delay raised specific unresolved issues. Senator Perez, while praising the author’s work and the extensive stakeholder process, announced “respectful opposition” and said key committee agreements were not honored in the version before the floor. Perez cited two outstanding commitments: striking language that rebrands non-classroom-based charters as “flex-based” without substantive operational changes, and removing provisions that would limit the state board’s discretion in funding determinations tied to reserve levels and actual spending. Perez also objected to insertion of unrelated verified-data renewal provisions (language from AB 1493) and to moving multiple policy pieces into a single fiscal-accountability bill without adequate committee hearings.

Other senators, including Senator Kababian, urged passage to prevent continued misuse of funds and to close loopholes that had enabled fraud in some cases. Senator Kababian said the bill addresses urgent financial controls and that delaying would continue the risk to district budgets and Proposition 98 school funding.

The clerk announced the roll-call result after floor debate and amendment consideration: “Ayes 24. No 0. The Assembly amendments are concurred in.” Several senators noted the bill will require additional work and clean up in the next session, and the author committed to continued negotiations with stakeholders including teachers' unions and oversight agencies.

Lawmakers said the bill will take effect as provided by law and that many provisions phase in over the coming fiscal year(s) to allow audits and verification processes to be implemented.