The proposed bill mandates that all charter schools in New Mexico operate as boards of finance, requiring them to conduct separate audits from their chartering authorities. Each charter school will be responsible for the costs of its own audit, which must be distinct from the chartering authority's audit but included in the overall audit. Additionally, charter school applicants must submit a plan by July 1, 2026, demonstrating how their governing body will qualify as a board of finance for public school funds. The bill also stipulates that locally chartered schools must qualify as boards of finance before finalizing their charter contracts or renewals, while the chartering authority retains oversight responsibilities to ensure compliance with state and federal laws.

The legislation outlines the procedures for the approval or denial of charter school applications, requiring the chartering authority to make a ruling by September 1 of the application year. If the authority does not meet this deadline, the application will be reviewed by the secretary. The bill specifies conditions under which applications may be denied, such as incomplete submissions or failure to meet educational requirements, and it removes the previous requirement for state-chartered schools to request designation as a board of finance. Instead, the governing body must either be designated or qualify as such. If an application is denied or approved with conditions, the chartering authority must provide written reasons within fourteen days, and applicants have the right to a hearing in case of denial.

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