The bill amends New Mexico's charter school laws to enhance financial governance and auditing processes. It requires all charter schools to operate as boards of finance, meaning they must independently bear the costs of their audits and select their own auditors. By July 1, 2026, locally chartered schools must qualify as boards of finance, ensuring they have the necessary personnel and training to manage public funds effectively. Additionally, charter school applicants must submit a detailed plan demonstrating how their governing body will qualify as a board of finance, with the potential for denial or revocation of a charter if they fail to meet this requirement. While audits must be separate, they will still be included in the overall audit of the chartering authority to promote financial accountability.

The bill also outlines the approval process for charter school applications, mandating that the chartering authority must make a ruling by September 1 of the application year. If the authority fails to do so, the application will be reviewed by the secretary. The authority can approve, approve with conditions, or deny applications based on specific criteria, and must provide written reasons for any denial or conditional approval within fourteen days. A significant change includes the deletion of the requirement for state-chartered schools to request designation as a board of finance, now replaced by a requirement for the governing body to either be designated or qualify as one. Additionally, charter schools denied approval have the right to a hearing by the secretary, ensuring an appeals process is in place.

Statutes affected:
introduced version: 12-6-4, 22-8-38, 22-8B-4