Charter schools: establishment prohibition and renewal procedures.

Senator Cortese’s measure aims to regulate the growth and oversight of charter schools by extending the prohibition on establishing new petitions for nonclassroom-based instruction through January 1, 2027, and by delaying the transition to a dashboard-based renewal framework until that same date. It also requires a study of how nonclassroom-based charter funding is determined, with a report due in March 2024, and it includes a standard provision that reimbursements would be provided if the act imposes state-mandated costs on local districts.

Regarding renewals, the bill preserves the current framework that relies on verified data through 2026 while postponing the introduction of the California School Dashboard-based renewal standards until 2027. Under the pre-2027 framework, a charter may be denied renewal if it shows two consecutive years of the lowest or near-lowest performance on state indicators, or if academic performance across metrics and subgroups sits at or below state averages with lower-than-average outcomes for a majority of subgroups. When renewal is considered under this framework, districts must issue written factual findings tied to specific conditions, including steps to address underlying causes of low performance and evidence of progress or strong postsecondary outcomes, all supported by verified data. A transitional provision allows some charters to receive shorter renewals (two years) if they meet particular criteria, while other charters not covered by the transitional provisions would still be evaluated under a framework that weighs academic performance more heavily and may result in longer renewal terms (up to five years) based on state and local indicators.

The bill also creates a two-stage implementation path: the dashboard-based renewal framework would take effect beginning in 2027, superseding the prior verified-data regime for charters subject to the new standards, and a sunset is set for the establishment prohibition in 2028. It imposes a potential cost to local educational agencies if new duties are created and mandates a study of nonclassroom-based funding processes with a reporting timetable, all while preserving an explicit reimbursement mechanism if state mandates impose costs on local entities. In addition, there are exceptions for charters that had prior approvals under certain conditions before 2019, and for cases arising from court decisions or federal requirements, which create a nuanced landscape for applicability across charter histories and governing authorities.