Governor Brown signed legislation banning for-profit charters. A few states, e.g. New York, banned for-profits long ago. The impetus for the legislation was the manipulation of student enrollment by K12 online management company. The suit was settled for a $168.5 million claim.
California has relatively few for-profit charters compared to Florida. Over forty percent of Florida charters are run by for-profit management companies like Academica and CSUSA and Newpoint. Florida law requires charters to be non-profit, but the law is circumvented. The management companies create a separate limited liability company (llc) with its own governing board which they appoint. This llc contracts with local school boards to open a charter. Then, the llc company subcontracts almost 100% of its public funding from the state to the for-profit management firm. These management companies are protected from public scrutiny.
Banning for-profit charter management does not stop all financial abuse at the expense of the public. It does, however, help to limit the excessive corruption and exploitation that plagues the charter industry.