School accountability: Office of the Education Inspector General: school financial and performance audits: charter school authorization, oversight, funding, operations, networks, and contracting: data systems: local educational agency contractor background checks.

Assembly Members Muratsuchi and Garcia have introduced comprehensive legislation to strengthen accountability across California's education system through enhanced financial oversight, standardized auditing practices, and expanded charter school monitoring. The bill establishes an Office of the Education Inspector General to conduct systemwide audits and investigations while implementing stricter requirements for financial reporting and compliance.

The legislation mandates that charter schools, school districts, and county offices of education adhere to standardized audit procedures and reporting timelines. Beginning in 2026-27, auditors must complete 24 hours of continuing education in governmental accounting and demonstrate prior experience with educational agency audits. The bill also phases in requirements for charter schools to report financial data using the same forms as school districts.

To improve charter school oversight, the measure creates the Charter Authorizing Support Team program to develop uniform authorization and monitoring practices. Starting in 2028, chartering authorities must annually verify attendance data, monitor payments, and attend governing body meetings of charter schools under their purview. The bill restricts smaller districts from authorizing nonclassroom-based charter schools if doing so would exceed their average daily attendance.

The legislation introduces new controls on charter school operations, including requiring governing body approval for contracts over $100,000 and prohibiting the allocation of discretionary enrichment funds to parents. For nonclassroom-based charter schools, the bill establishes specific funding determination criteria based on teacher compensation, instructional expenditures, and student-teacher ratios.

To strengthen data systems, the Department of Education must evaluate integration of attendance tracking with the state's longitudinal student data system by 2030. The bill also expands background check requirements for contractors working with students and updates teacher credentialing oversight procedures.

The measure includes provisions to ensure proper implementation through phased timelines while maintaining existing services until new requirements take effect. Local agencies may receive state reimbursement for costs associated with implementing the mandated changes.