This bill amends Oklahoma's laws regarding charter schools, focusing on funding and financial management. It introduces a new Revolving Loan Fund Program for Charter School Capital Expenditures, managed by the Statewide Charter School Board, which will provide loans and loan guarantees to charter schools at lower interest rates for capital projects. Additionally, a Charter School Bond Credit Enhancement Program is established to help qualifying charter schools secure favorable financing for facility expenditures, requiring schools to meet specific criteria and maintain a debt service reserve account. The bill also modifies existing funding provisions by removing the prohibition on issuing bonds and clarifying the state's repayment obligations, allowing charter schools to receive state aid and federal funds while enabling the Statewide Charter School Board to set interest rates for loans.

Furthermore, the bill outlines procedures for the Charter School Bond Credit Enhancement Program in the event of a default on payment obligations, mandating the use of the school's restricted debt service reserve account and notifying relevant state authorities. The State Comptroller is tasked with transferring funds to cover one month's interest on the bonds, while the State Treasurer must report annually on the status of reserve accounts. The legislation clarifies that bonds issued under this program are not considered state indebtedness but are special obligations payable from charter school revenues and appropriated funds, with a cap of $250,000 on the total outstanding principal amount of bonds issued. The act is set to take effect on November 1, 2026.