ID S1103

Creates a Public Charter School Facilities Program to help qualifying charter schools obtain favorable bond financing for facility improvements and construction, with the goal of reducing interest payments and keeping more funds available for students.

Establishes eligibility requirements for charter schools, including letters of commitment from financial institutions, proof of academic/operational/financial good standing, audit opinions without significant findings, and evidence of strong academic results on state achievement tests.

Requires participating schools to maintain a restricted debt service reserve account with a minimum of 12 months' principal and interest payments, held by the bondholder or trustee.

Creates a Public Charter School Facilities Program Fund in the state treasury funded through appropriations, fees, grants, and gifts, with participating schools paying a one-time fee of two basis points of their bond principal amount.

Establishes a nonpayment protocol where if a school defaults 30+ days late, funds are withdrawn from the school's reserve account, and if that is insufficient, the state controller transfers funds from the program fund with the school required to repay through future facilities allocations.