CA SB414

Establishes the Office of the Education Inspector General until January 1, 2034, to conduct forensic audits and investigations of fraud, misappropriation of funds, and illegal practices at the California Department of Education, local educational agencies, and charter schools, with findings referred to district attorneys and the Attorney General

Requires chartering authorities to review credit and debit card transactions of charter schools during fiscal monitoring, notify authorities if fraud is suspected, and prohibits renewal of charter schools receiving the two lowest performance levels for two consecutive years without written findings demonstrating meaningful improvement steps

Extends the moratorium on approving new flex-based (nonclassroom-based) charter schools through June 30, 2026, and requires the State Board of Education to determine funding levels (70%, 85%, or 100%) based on certificated staff salary expenditures and instructional spending thresholds

Creates the Charter Authorizer Mentor Grant Program to provide technical assistance to struggling chartering authorities and the Charter School Authorizer Grant Program to help chartering authorities cover increased oversight costs

Requires local educational agencies by July 1, 2027, to adopt contracting policies prohibiting expenditure of public funds on sectarian activities, financial incentives for enrollment, season passes to amusement parks, and contracts with a pupil's own family members for services exclusively to that pupil