SB 1406 Summary

• Amends charter school application language from "submit a written application" to "apply in writing" and clarifies that charter applicants must apply only to authorized sponsors (state board of education, state board for charter schools, universities, or community college districts).

• Modifies charter school financial audit requirements to require independent annual audits of financial statements and makes audit results, including salaries paid to education/charter management organizations, available to the public.

• Changes property disposition rules so that if a charter school closes, any assets acquired with public monies must be returned to the state, unless proceeds from asset sales fund capital costs for a new campus of that school.

• Removes exemption from procurement rules for certain charter schools and establishes that charter schools must follow the same procurement practices as school districts, including competitive bidding requirements and audit review processes for purchasing practices.

• Requires charter school audits to identify the source of any profit distributions exceeding net profits for that year and eliminates the definition of "nonexempt charter school" from procurement law provisions.