House approves charter‑school bonding authority to lower financing costs

Representative Urquhart sponsored House Bill 3 18 to create a Charter School Finance Authority that would allow charter schools to issue bonds and obtain more favorable financing rates. He emphasized the authority would be structured so that "this may not exercise power in any manner which would create general or moral obligations of the state or any agency" and said the approach mirrors other bonding authorities used by municipalities and higher education.

Several members questioned vesting significant power in a three‑member board (governor or designee, state treasurer, state superintendent or designee) and asked why bond authority could not be channeled through school districts. Representative McGee asked, "If it seems odd to place this power in the hands of this 3 member board, I would think that the charter school board itself would have considerable responsibilities and would want to have the authority in this area." The sponsor replied such authorities are commonly used to assure bond issuers and to obtain lower rates without creating state general‑obligation debt.

Questions were also raised about the absence of a fiscal note showing administrative costs and about public notice or hearing requirements for bond actions; the sponsor said per‑diems and expenses are included and that existing practice for similar authorities informed the draft.

After amendment 3 (technical/bonding community input) and sustained floor discussion, the House voted to pass the bill as amended; the clerk recorded 64 yes votes, 5 no votes, 6 absent. The bill will be referred to the Senate for further consideration.