CA AB406

Effective July 1, 2019, charter school petitioners and schools submitting renewal or material revision applications are prohibited from operating as or being operated by for-profit corporations, for-profit educational management organizations, or for-profit charter management organizations.

"Operate as, or be operated by" includes for-profit entities that nominate/appoint board members, employ school personnel, manage day-to-day operations, approve budgets, or provide services without governing body approval at a public meeting.

Charter schools are prohibited from using subcontracts to circumvent the for-profit operation restrictions.

Chartering authorities remain entitled to appoint a single representative to the board of directors of nonprofit public benefit corporations operating charter schools.

Chartering authorities are not liable for charter school debts, obligations, or claims if they comply with all statutory oversight responsibilities.