Senate Bill No. 71 proposes significant amendments to the Louisiana Charter School Start-Up Loan Fund, which will be renamed the Louisiana Charter School Start-Up and Expansion Loan Fund. The bill expands the authorized uses of the fund to include not only initial start-up funding for eligible charter schools but also funding for the expansion of existing operations and facilities, as well as associated costs related to facility predevelopment and development. The definition of "eligible charter school" is broadened to encompass any Louisiana public charter school authorized by local school boards or the State Board of Elementary and Secondary Education, along with affiliated organizations and real estate entities.

The bill also introduces new administrative procedures, including the establishment of eligibility criteria for loans, the ability for the State Board to enter into contracts, and the reimbursement of administrative expenses from the fund. It removes the requirement for no-interest loans and repeals previous limitations on the use of loan funding, allowing for a wider range of purposes such as equipment purchases and facility renovations. Eligible charter schools must demonstrate financial viability and submit a supplemental reporting schedule as part of their annual financial reporting. The legislation stipulates that schools can only take out one loan at a time, requires state board approval for all loans, and outlines terms for repayment, ensuring accountability and transparency in the management of the fund.

Statutes affected:
SB71 Original: 24:514(I)