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Senate advances bill to assign charter‑school liabilities to boards, tighten oversight

5493438 · July 29, 2025
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Summary

Bill 68‑38 COR would clarify that liabilities incurred by academy charter schools without Attorney General and governor approvals would be the responsibility of the charter boards and trustees; sponsors said the measure is prospective and does not retroactively remove existing liabilities.

The Legislature moved Bill 68‑38 COR, which clarifies responsibility for liabilities incurred by academy charter schools, to third reading after floor debate about existing debt and statutory immunity provisions.

Sponsor Speaker Blas said the bill was drafted following consultations with the public auditor, who raised concerns about unclear fiscal accountability when charter schools incur debts. The amendment defined that liabilities incurred by a charter school without review and approval by the Attorney General and the governor are the personal responsibility of the charter’s incorporators, trustees or officers rather than the government of Guam.

Floor questions probed whether liabilities incurred before enactment could be addressed and how donations and private funding interact with contractual obligations. The sponsor said the bill is prospective — it applies to liabilities arising after enactment — and acknowledged outstanding liabilities may remain the government’s responsibility under current law. Several senators urged additional measures such as requiring AG review of large contracts and tightening immunity language so trustees cannot evade responsibility; the sponsor indicated willingness to work further with the public auditor and the Attorney General’s Office on drafting refinements.

Supporters said the measure will protect taxpayers and preserve charter autonomy while ensuring boards are accountable for contractual commitments. The chair accepted motions to add cosponsors; the floor ordered the bill to third reading without objection. Lawmakers and the public auditor signaled follow‑up work to reconcile immunity language and retroactive liabilities where appropriate.